UK Food Price Inflation Slows to Lowest Level This Year

New figures suggest food price inflation has slowed to its lowest level this year as prices of oils, fish, and breakfast cereals fall.

According to the British Retail Consortium, BRC and NielsenIQ retail analysts, food inflation slowed to 13.4% in July from 14.6% in June this year.

But overall, shop prices are still 7.6% higher this July than a year ago.

BRC chief Helen Dickinson said the figures were a cause for optimism but warned of supply chain issues ahead.

She also suggested that Russia’s withdrawal from the Black Sea Grain Initiative and targeting of grain facilities, as well as rice export restrictions from India, were “dark clouds on the horizon”.

According to the BRC trade body, the fresh numbers marked a third consecutive month of slowing and the lowest level of food inflation since December last year.

Clothing and footwear were among the beneficiaries last month as retailers “mitigated the wet weather” with larger discounts.

Mike Watkins, head of retailer and business insight at NielsenIQ, admitted the outlook was improving.

In the last year, soaring food and energy bills have helped drive inflation in the country.