Food inflation in UK slows to its lowest level this year

Food price inflation in the United Kingdom has slowed to its lowest level this year in line with a decrease in the prices of oils, fish, and breakfast cereals, BBC reported. 

Inflation in the month of July slowed by 13.4% as compared to 14.6% in June, as per the British Retail Consortium (BRC) and NielsenIQ retail analysts.

However, the shop prices are still 7.6% higher this month as compared to last year's numbers. 

"These figures give cause for optimism, but further supply chain issues may add to input costs for retailers in the months ahead," said BRC chief Helen Dickinson.

"Russia's withdrawal from the Black Sea Grain initiative and subsequent targeting of Ukrainian grain facilities, as well as rice export restrictions from India are dark clouds on the horizon.

"We expect some global commodity prices to rise again as a result, and food prices will be slower to fall," she said.

This is the third consecutive month in which inflation slowed down while the lowest level of food inflation since December last year, according to the BRC trade body.

NielsenIQ's Head of Retailer and Business Insight, Mike Watkins, admitted an improvement in the outlook. 

"Shoppers continue to change how they shop as part of their coping strategies," he said.

"This includes shopping at different retailers, buying lower priced items, delaying spend or only buying when there are promotions."

Inflation was soaring in the last year due to an increase in food and energy bills.