// Food inflation in May slowed for the first time in nearly two years but remains the second-fastest annual increase ever measured
// Annual food inflation slipped slightly from 15.7% to 15.4% this month
Food inflation has fallen for the first time in nearly two years – but is still 15% higher year on year.
The latest figures from the British Retail Consortium show annual food inflation slipped slightly from 15.7% to 15.4% in May.
Despite the fall, it was still the second-fastest annual increase ever measured.
Chief executive Helen Dickinson said the recent dip gave her reason to believe food inflation “might be peaking”.
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However, shop price inflation rose to 9% this month, up from 8.8%, as a result of rising operational and energy costs.
BRC chief executive Helen Dickinson said: “While overall shop price inflation rose slightly in May, households will welcome food inflation beginning to fall.”
The fall in food inflation was “largely driven by lower energy and commodity costs starting to filter through to lower prices of some staples including butter, milk, fruit and fish”.
However, the price of chocolate and coffee rose “off the back of the ongoing high global costs for these commodities”, she said.
“While there is reason to believe that food inflation might be peaking, it is vital that the government does not hamper this early progress by piling more costs onto retailers and forcing up the cost of goods even further,” Dickinson added.
This comes as prime minister Rishi Sunak is said to be working on plans for supermarkets to introduce voluntary price caps on essential food items to help tackle rocketing food inflation.
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