Grocery price inflation has dropped to 16.5 per cent in the four weeks to 11 June, the lowest level in 2023.

However, the figures published by Kantar on Tuesday also show that the period had the sixth highest monthly inflation rate since the 2008 financial crash.

Research by the data analytics firm revealed that nearly 70 per cent of households are "extremely" or "very worried" about rising food and drink prices.

“This is the lowest rate of grocery price inflation we’ve seen in 2023, which will be a relief to shoppers and retailers,” said Fraser McKevitt, head of retail and consumer insight at Kantar. “But prices rising at 16.5 per cent isn’t something to celebrate and it’s still the sixth highest monthly figure in the past 15 years.”

McKevitt said that prices rises are now being compared to the increasing rate of grocery inflation seen last summer, meaning that inflation should continue to fall over the next few months.

The figures come after prime minister Rishi Sunak abandoned plans to ask supermarkets to impose a voluntary price cap on basic goods.

Sue Davies, head of food policy at consumer champion Which?, called on the government to get "urgent commitments" from supermarkets on stocking budget ranges in all their stores and provide clearer pricing.

Morrisons this week announced plans to reduce prices on over 500 products including frozen foods, nappies and meats.

Marks & Spencer has also said it would freeze or drop the price of around 200 items in a bid to support its customers during the cost-of-living crisis.

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