Food inflation decelerated to 13.4% in July – the lowest level since November 2022, new data reveals.
The BRC-Nielsen Shop Price Index shows fresh food inflation slowed further in July, to 14.3%, down from 15.7% in June. This is below the three-month average rate of 15.7%, the data shows.
In addition, ambient food inflation decelerated to 12.3% in July, down from 13% in June, this is the lowest since February 2023.
Total annual shop price inflation decelerated to 7.6% in July, down from 8.4% in June.
Helen Dickinson, Chief Executive of the British Retail Consortium, said: “Food price inflation slowed to its lowest level this year, with falling prices across key staples such as oils, fats, fish, and breakfast cereals.
“These figures give cause for optimism, but further supply chain issues may add to input costs for retailers in the months ahead. Russia’s withdrawal from the Black Sea Grain Initiative and subsequent targeting of Ukrainian grain facilities, as well as rice export restrictions from India are dark clouds on the horizon. We expect some global commodity prices to rise again as a result, and food prices will be slower to fall. Retailers continue working hard to keep falling prices on track.”
Mike Watkins, Head of Retailer and Business Insight, NielsenIQ, said: “The summer holiday period should help discretionary spend a little and whilst inflation remains high, the outlook is improving. Shoppers continue to change how they shop as part of their coping strategies. This includes shopping at different retailers, buying lower-rice items, delaying spend or only buying when there are promotions. This behaviour looks set to continue.”
