Food inflation at lowest level since 2021, figures show

New figures show that food inflation is at its slowest rate for years, as Sally Biddulph reports

Food inflation is now at its lowest point since 2021, new figures have shown.

Food prices in June were 2.5% higher compared to last year - down from 3.2% in May - marking the fourteenth consecutive slowing of inflation, according to the to the British Retail Consortium (BRC).

Although the cost of food items is still higher than a year ago, the numbers show the rate of increase is coming down.

Falling prices for key products, such as butter and coffee, are behind the inflation decrease, which is now lower than at any time since December 2021.

Fresh food inflation slowed further to 1.5% - down from 2% in May - while overall shop price inflation eased to 0.2% in June, down from 0.6% in May - its lowest point since October 2021.

Mike Watkins, head of retailer and business insight at NielsenIQ, said: “Shop price inflation is still slowing and this will be of help to shoppers as they plan their household budgets for essential goods and services.

“With uncertainty around discretionary spending, we expect the intense competition across the marketplace to keep price increases as low as possible this summer.”

The development comes after figures from the Office for National Statistics (ONS) in June showed overall inflation fell to the 2% target for the first time in three years.

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