Food inflation rate falls for third consecutive month

UK food inflation has fallen for the third month in a row, according to the latest ONS consumer price inflation data.

The figures show that in June, food inflation declined by one per cent from 18.3 per cent in the previous month to 17.3 per cent.

Over the same period, overall inflation dropped from 8.7 per cent to 7.9 per cent.

Commenting on the results, chief executive of the British Retail Consortium (BRC) Helen Dickinson said that efforts by retailers to curb price rises and reduce inflation appear to be paying off, with prices for cheese, fruit and fish dropping as lower commodity costs and cheaper energy prices filtered through to customers.

Dickinson added there were also price drops for children’s clothing, household textiles, and domestic appliances, driven by an increase in summer discounting.

However, she warned that supply chains "remain volatile", explaining that Russia's decision to pull out of the Black Sea Grain Initiative could increase costs for some staples in the future.

The figures come weeks after the governor of the Bank of England told the BBC that there is strong evidence that some retailers are overcharging customers.

In an interview, Andrew Bailey said that evidence of overcharging was adding to pressure on the retail sector, with the UK experiencing the highest inflation rate amongst comparably sized economies.

Last week, the BRC revealed that total UK retail sales had climbed by almost five per cent in the five weeks to 1 July.

The organisation said that the rise – which came against a one per cent decline in the same period of 2022 and ahead of the 12-month growth average of four per cent – was down to the recent hot weather prompting purchases of “summer essentials”.

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