Food inflation has fallen again in the UK as lower energy and commodity costs filter through to supermarkets, which has seen them lower prices on ranges like milk, butter and fruit.
According to figures compiled by the British Retail Consortium (BRC) and the data firm Nielsen, food inflation fell to 15.4% this month, from 15.7% in April.
While May’s figure is slightly lower than the food inflation seen in April, it is still the second fastest annual increase the BRC has measured.
Also, overall shop price inflation has edged up to high of 9% this month, from 8.8% the month before.
The BRC claims this was the result of labour costs, energy costs for shops, contract prices and a weak pound which is only just starting to recover.
It comes as grocery price inflation falls for the second month in a row and now sits at 17.2%, for the four weeks to 14 May 2023.
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Additionally, UK supermarkets have claimed that food prices have peaked, meaning we will see inflation continue to fall significantly this year.
“While overall shop price inflation rose slightly in May, households will welcome food inflation beginning to fall,” the chief executive of the BRC, Helen Dickinson said.
“The fall in food 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.”
However, the price of chocolate and coffee rose “off the back of the ongoing high global costs for these commodities”, Dickinson added.
Chief executive of The Federation of Wholesale Distributors, James Bielby commented: “Obviously the costs would have to recouped elsewhere.
“If prices are fixed in one point of the supply chain, input costs don’t go down, and it would potentially work its way into smaller sectors (wholesale, supply and convenience) and the hospitality sector.
“A voluntary scheme isn’t going to work, and price fixing isn’t something they’ve done since the ’70s. This is a non-starter,” he commented.
