Food inflation fell 0.2 percentage points in June to 1.5% as the prices of essential items such as pasta and margarine eased.

According to the Office for National Statistics’ latest consumer price inflation tracker, this figure is the lowest annual rate since October 2021, when it was 1.3%, and compares with 17.4% a year ago.

It found that prices of meat fell this year, having risen last year, while prices of fruit fell at a faster rate than last year. Although the cost of bread and cereals rose on the month, the increase was at a slower rate than a year ago.

Packs of individual cakes and crumpets had the largest downward impact on the annual rate, while the largest upward contributions came from sponge cake, sugarless breakfast cereal, tinned tuna, Kettle Chips, and orange juice.

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Meanwhile, the headline rate remains at 2%, while inflation on alcoholic beverages and tobacco has fallen 0.5 percentage points to 7.3%.

British Retail Consortium director of insight Kris Hamer said: “Households will benefit from falling inflation rates in retail. Falling energy prices and a stronger pound, combined with fierce competition between retailers, are helping to bring down prices for many goods, including essential items like pasta and margarine.”

However, he added that “while we should celebrate the end of high inflation,” we should remain cautious.

“The impact of climate change on harvests at home and abroad, as well as rising geopolitical tensions, could increase commodity prices and translate into higher inflation in the future.”