A welcome fall in food inflation
Responding to the latest CPI inflation figures which shows headline inflation remaining at 8.7% and food inflation falling to 18.3%, Helen Dickinson, chief executive of the British Retail Consortium, said:
“It is a really positive sign that food inflation has fallen for the second consecutive month, the first time this has happened since the Ukraine war began. While some prices continue to rise, we are now seeing regular news reports of falling prices on many essential products, such as loo rolls and vegetable oil. It has been good to see larger drops in inflation rates for flour, milk and eggs as retailers continue to invest heavily in lower prices for the future and locking the price of many essentials, helping the UK to deliver some of the cheapest groceries in Europe. Elsewhere, consumers will find themselves under pressure from increased health and communication costs, as inflation rates in both categories rose in May.
“With inflation generally trending down, it is vital that government does not introduce new policies that would add costs to retailers. Government should consider how current timelines for a deposit return scheme and reformed packaging levy (“Extended Producer Responsibility”) could limit the ability of inflation to fall. This is on top of a new Windsor framework labelling, and upcoming increases to business rates.”