Food inflation slowed further in June, however British Retail Consortium (BRC) chief executive Helen Dickinson has warned the industry could face “renewed pressure on food prices in the future”.

According to the latest BRC-NielsenIQ shop price index, food inflation slowed to 2.3% in July, down from 2.5% in June, and below the three-month average rate of 2.7%.

Price rises in the category is now at its lowest rate since December 2021.

Dickinson said: “The 2023 declines in global food commodity prices continued to feed through, helping bring down food inflation rates over the first seven months of 2024. However this shows signs of reversing, suggesting renewed pressure on food prices in the future.”

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Fresh food price rises slowed to 1.4% down from 1.5% the month before and ambient food decelerated to 3.6% in July, down from 3.9% in June.

NielsenIQ head of retailer and business insight Mike Watkins said: “As we cycle through high inflation comparatives from a year ago we can expect a lower level of inflation for a number of months to come.

“But with the squeeze on household finances continuing, consumer confidence only slowly improving, and poor summer weather so far, retailers will still need to keep any price increases to a minimum to encourage shoppers to spend.”