Food inflation continues to fall, states the British Retail Consortium (BRC), pointing to the latest CPI inflation figures which shows headline inflation falling to 7.9% and food inflation falling to 17.3%.
Furniture, household equipment and maintenance inflation fell to 6.5% in June, from 7.5% in May.
Helen Dickinson, chief executive of the BRC, says: “Efforts by retailers to curb price rises and reduce inflation appear to be paying off as inflation rates for food fell for the third month in a row. Prices for cheese, fruit and fish all dropped as lower commodity costs and cheaper energy prices filtered through to customers.
"There were also drops for many non-food items such as children’s clothing, household textiles, and domestic appliances, boosted by an increase in summer discounting. However, supply chains remains volatile – Russia’s decision to pull out of the Black Sea Grain Initiative could increase costs for some staples in the future.
“Falling inflation rates are welcome news, and a clear sign that competition is bringing down prices wherever cost pressures ease. Retailers are doing their bit but Government also has a role to play to bring inflation down – the upcoming Deposit Return Scheme and reformed packaging levy (Extended Producer Responsibility) would saddle retailers with another £4b in costs, putting renewed pressure on prices. Government should reconsider the timelines for these interventions, especially on the back of costs arising from Windsor Framework labelling, and upcoming increases to business rates.”
