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UK store worth inflation slowed in June helped by a second consecutive month-to-month decline within the progress of meals costs, in keeping with the newest trade information.
The price of store gadgets rose at an annual price of 8.4 per cent this month, down from 9 per cent in Might and under the three-month common of 8.7 per cent, figures revealed on Tuesday by the British Retail Consortium confirmed.
The easing was helped by a decelerate in meals worth progress — the place inflation has been significantly acute — to 14.6 per cent in June from 15.4 per cent within the earlier month and down from an all-time report excessive of 15.7 per cent in April.
Sharply rising meals prices and excessive vitality costs within the wake of Russia’s full-blown invasion of Ukraine final 12 months have been the primary drivers of the price of residing disaster, with inflation within the UK remaining stubbornly excessive.
“Households up and down the nation will welcome the easing of store worth inflation in June,” mentioned Helen Dickinson, chief govt of the British Retail Consortium.
She mentioned contemporary meals costs have been a key driver of the slowdown as retailers minimize the price of many staples, together with milk, cheese and eggs. The annual progress of contemporary meals costs in June was 15.7 per cent, down sharply from 17.2 per cent the earlier month.
The value of ambient meals inflation — gadgets that may be saved at room temperature — fell barely to 13 per cent, down from 13.1 per cent in Might.
“If world provide chain prices proceed to fall, we could now be previous the height of [food] worth will increase,” mentioned Mike Watkins, head of retail and enterprise perception at NielsenIQ, which helps compile the information.
Official meals and non-alcoholic drinks inflation fell to 18.4 per cent in Might from 19.1 per cent within the earlier month, an extra decline from the 45-year excessive of 19.2 per cent reached in March. The BRC figures recommend the slowdown will proceed this month.
The BRC information confirmed retailers have been discounting on clothes and electrical items, serving to non-food inflation ease 0.4 proportion factors to five.4 per cent in June.
However costs stay excessive by historic requirements and Watkins mentioned he anticipated buying behaviour for the remainder of this 12 months was “nonetheless prone to shift in the direction of important wants with discretionary consumption being deprioritised or delayed”.
Information revealed final week confirmed that family items gross sales volumes have been 7.6 per cent under their pre-pandemic February 2020 ranges, as shoppers in the reduction of on purchases in response to greater costs.