The rapid increase in the price of food in the UK showed signs it may have reached its peak on Tuesday as a survey of prices in shops suggested the rate of inflation fell between April and May.
In the year to May, food inflation fell to 15.4 per cent, according to a survey by the British Retail Consortium and Nielsen.
This is down from 15.7 per cent in April.
It is still an incredibly high figure, meaning that a person who spent around £20 ($25) on food a year ago would now be paying a little over £23 for the same items.
Although May’s figure is lower than the food inflation seen in April, it is still the second fastest annual increase the BRC has measured, it said.
Inflation around the world – in pictures
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People queue to buy wheat flour at government-controlled prices in Islamabad. Pakistan's economy has been hit hard by a political crisis, as well as devastating floods and the global energy crisis, with the rupee plummeting and inflation at decades-high levels. AFP -
A market in Rio de Janeiro. Brazil's inflation ended 2022 with a sharp slowdown from double-digit peaks seen throughout the year. Reuters -
A market in Istanbul. Turkey's inflation at the end of 2022 stood at 64. 27 per cent, the country's Statistical Institute said, while the independent group of inflation researchers ENAG calculated it at 137. 55 per cent. EPA -
A Walmart in New Jersey. According to a poll, US Republicans and Democrats have distinct views of what’s most important for the government to address amid high inflation. More Republicans name gas and food prices, energy and immigration, while Democrats focus on health care, climate change and poverty. AP -
A used car sales lot in California. US Federal Reserve officials have indicated it’s possibly too early to declare victory over inflation. AFP -
A person walks by a sign showing interest rates at a bank in New York. EPA -
A woman walks with purchases past a store in Berlin. In December, consumer price growth across the Euro zone slowed to 9.2 per cent from 10.1 per cent a month earlier, Eurostat data showed last week. AP -
Workers sit in front of a banner reading "Stop the Inflation Monster" at the Burchardkai Container Terminal as they go on strike for higher wages at the harbour in Hamburg, Germany. Reuters -
Price tags at a market in Nice, France. Reuters -
Commuters cross Waterloo Bridge in London. The British Retail Consortium said spending in store chains rose by 6.9 per cent in annual terms in December, but this was a long way off consumer price inflation, which hit 10.7 per cent in November. Reuters -
Jobseekers in Johannesburg. South Africa’s governing party wants the central bank’s mandate broadened to shore up the economy and promote employment in addition to its existing task of tackling inflation. Reuters -
Social grant recipients stand in a queue outside a post office, as joblessness takes its toll in Meadowlands, South Africa. Reuters
The price of fresh food increased by 17.2 per cent in the year to May, down from 17.8 per cent in April, it added.
However, ambient food inflation – shelf-stable items that can be stored at room temperature – rose from 12.9 per cent in April to 13.1 per cent in May.
Overall inflation in shops rose from 8.8 per cent to 9 per cent between April and May, the BRC said, an all-time high.
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“While overall shop price inflation rose slightly in May, households will welcome food inflation beginning to fall,” said BRC chief executive Helen Dickinson.
“The slow in inflation was largely driven by lower energy and commodity costs starting to filter through to lower prices of some staples including butter, milk, fruit and fish.
“Conversely, the price of chocolate and coffee rose off the back of the ongoing high global costs for these commodities.
“While non-food inflation rose, consumers are benefitting from heavy discounts in footwear as well as books and home entertainment.
“Fierce competition between supermarkets has helped keep British food among the cheapest of the large European economies.
“While there is reason to believe that food inflation might be peaking, it is vital that government does not hamper this early progress by piling more costs on to retailers and forcing up the cost of goods even further.
“The biggest risk comes from policies such as the incoming border checks and reforms to packaging recycling fees.”
Mike Watkins, head of retailer and business insight at NielsenIQ, said: “To help mitigate the impact of inflation, shoppers are saving money by looking for seasonal promotions on the high street and taking advantage of the price reductions offered by supermarket loyalty schemes.
“Food retailing in particular is competitive, so hopefully the recent price cuts in fresh foods is a sign that inflation has now peaked, albeit ambient inflation may take a little while longer to slow.”
