Food price inflation slowed slightly in May as lower energy and commodity costs finally showed signs of filtering through to consumers.
Grocery inflation fell to 15.4 per cent during the month, according to British Retail Consortium data, down from 15.7 per cent in April – but still the second highest in the food category on record.
As supply issues eased and the weather improved, the fresh food inflation rate fell to 17.2 percent, down from 17.8 percent in April. This is lower than the three-month average rate of 17.3 percent.
“Fierce competition among supermarkets has helped keep British food among the cheapest in large European economies,” said Helen Dickinson, chief executive of the British Retail Consortium.
While the cost of some items fell, shoppers still saw the cost of ambient food items such as canned goods rise during the month, rising to 13.1 percent from 12.9 percent.
While reports suggest food price inflation may have peaked, households across the UK are still grappling with the rising cost of living, with rumors suggesting Downing Street could impose a cap on staple foods to help households rise. the prices.
The scheme, which is understood to be in the drawing stage at No. 10, would require retailers to charge as low as possible for household essentials such as bread and milk.
A Treasury source told The Sunday Telegraph, which first reported the news: “Food price inflation is more elastic and harder to shake than we had anticipated.”
It is understood that supermarkets will be allowed to choose only which items should participate in the scheme on a voluntary basis.
However, Andrew Opie, the BRC’s director of food and sustainability, said he was skeptical the plans would work.
This will not make any difference to the prices. Higher food prices are a direct result of higher energy, transportation and labor costs, as well as higher prices paid to food processors and farmers.
“With commodity prices falling, many of the costs of keeping inflation high now arise from muddle through new regulations coming from the government. Rather than re-establishing 1970s-style price controls, the government should focus on cutting red tape so resources can be directed at keeping prices down.” As much as possible “.