Food inflation at three-year low

Food inflation is at its lowest level since 2010, the British Retail Consortium (BRC) revealed, following a third consecutive dip in retail shop prices for last month, which fell from 0.5% in June to 2.2% in July.

BRC director general Helen Dickinson noted that shop price inflation was at its lowest for more than six years, adding: “This is great news for hard pressed families whose budgets have been squeezed by rising utility bills, transport and other costs.” She said this was proof of how hard retailers are working to serve their customers “and underlines how deep the promotions and discounts from retailers are at the moment”.

Meanwhile, Mike Watkins, head of retail at the business insight company Nielsen, which helped to compile the figures, noted that the weather played a part in the data. He said: “While the 2013 heatwave is bringing strong sales uplifts for food retailers, it’s holding back some non-food sales growth, so the welcome slowdown in shop price inflation in July should benefit most retailers and help to kickstart consumer demand as we enter the peak holiday period.”