Slowing food inflation aided in large part by retailers – BRC
Shop price inflation has returned to “normal levels”, now at 0.6% in May according to the latest figures from the British Retail Consortium.
This was helped by slowing food inflation, with fresh food inflation falling to its lowest level since November 2021.
Food inflation decelerated to 3.2% in May, down from 3.4% in April, representing the 13th consecutive deceleration in the food category, leaving inflation at its lowest since February 2022.
Fresh food inflation slowed further in May, to 2.0%, down from 2.4% in April, while ambient food inflation also decelerated in May, to 4.8%, down marginally from 4.9% in April, and the lowest since June 2022.
Chief executive of the BRC, Helen Dickinson said ambient food inflation remained “stickier” especially for sugary products which continued to feel the effects of high global sugar prices.
“Retailers are playing a big part in bringing inflation down, but future government policy must support this too,” she said.
“As the cost burden of new policies rises – from business rates to packaging taxes – this affects not just the businesses, but their customers too.”
Mike Watkins, Head of Retailer and Business Insight at NielsenIQ added: “After a number of months of falling input prices, we are now seeing food inflation stabilise and retailers continue to pass on price cuts to shoppers.
“Across the industry, while inflationary pressure has eased and there is some improvement in shopper sentiment, the unseasonable weather has dampened retail sales so lower prices look set to continue and promotional activity is likely to increase drive demand.”
