UK shop price inflation falls to slowest rate in 10 months

Slowing fresh food price increases are dragging down overall retail price inflation, according to industry figures

Price rises in British shops have slowed to their lowest rate since October, but keep going up, data from the British Retail Consortium shows. PA Wire

Price rises in British shops have slowed to their lowest rate of growth since October, according to the British Retail Consortium.

The BRC said on Tuesday that prices rose 6.9 per cent in the year to August, down from 8.4 per cent in July.

The main reason was that prices of fresh food were increasing less rapidly, the BRC said.

Fresh food inflation slowed to 11.6 per cent in August, down from 14.3 per cent in July.

The BRC added that inflation for non-food items was unchanged at 4.7 per cent this month.

"Better news for consumers as shop price inflation in August eased to its lowest level since October 2022," said the BRC's chief executive Helen Dickinson.

"This was driven by falling food inflation, particularly for products such as meat, potatoes and some cooking oils.

"While inflation is on course to continue to fall thanks to retailers' efforts, there are supply chain risks for retailers to navigate.

"Russia's withdrawal from the Black Sea Grain Initiative and its targeting of Ukrainian grain facilities, as well as poor harvests across Europe and beyond, could serve as potential roadblocks to lower inflation."

Eroding trust

Separately, the British consumer group Which? found that food prices, which have been consistently higher than overall inflation figures, are now on a par with energy costs as a source of concern among households.

The Which? monthly consumer insight tracker survey found more than three-quarters of consumers had changed their shopping habits in response to high prices, with 54 per cent buying cheaper products and 24 per cent going without some food.

One in seven people said they were skipping meals to cope with high food costs.

"The cost of the weekly shop is now on a par with energy bills as the biggest worry for millions of households," said Katie Alpin, head of strategic insight at Which?

"Supermarkets have the power to ease the huge pressure faced by shoppers, especially families and those on low incomes, by putting low-cost budget range items in hundreds of more expensive convenience stores.

"Which? research has found that these stores rarely, if ever, stock the cheapest products."

The Which? survey also found that trust in the grocery sector has fallen to its lowest level in ten years.

The survey calculates a 'trust score' on a scale from -100 to +100.

In February 2013, the Which? 'trust score' came in at 24, following the discovery of horse DNA in frozen beef burgers and lasagne sold in some Irish and British supermarkets.

This month, the UK's grocery sector scored 30, following months of increasing food prices.