Inflation fell to 6.7% in the year to August, down from 6.8% in July, according to the latest CPI inflation figures.
Food inflation has fallen to 13.6%, down from 14.9% in July, according to the latest data. Price rises for milk, cheese, and eggs slowed the most, while fish, oils and fats, and vegetable prices also eased.
Helen Dickinson, Chief Executive of the British Retail Consortium, said: “Food inflation eased for the fifth month in a row, underpinning the hard work by retailers to bring costs down. Fierce competition between supermarkets has helped to bring down prices for many essentials including bread, butter, milk and fish.
“With headline inflation still above 6% and at risk of being pushed back up from rising oil prices, retailers are in line for an increase of more than £400m-a-year in their business rates bill, determined by September’s CPI. This announcement would put further pressure on consumer prices, just as inflation is beginning to come under control. ”
