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UK store price inflation fell in August to its lowest level in nearly a year, driven by lower food cost pressures, according to sector data.
The British Retail Consortium published figures on Tuesday showing the annual rate slowed to 6.9 percent in August, down from 8.4 percent in July and the lowest since October 2022.
Helen Dickinson, chief executive of the British Retail Confederation, said the drop in store prices was driven by the cost of food, “particularly for products such as meat and potatoes and some cooking oils”.
Inflationary pressures were particularly acute for food, but BRC data showed that food price inflation slowed to 11.5 percent in August, down from 13.4 percent in the previous month and the lowest since September last year.
Rising food prices and soaring energy costs in the wake of Russia’s massive invasion of Ukraine last year have been the main drivers of the cost-of-living crisis.
Lower electricity and gas prices in recent months have helped reduce the UK’s headline inflation rate, which eased to 6.8 per cent in July, although it remains stubbornly high.
Official data in recent months also showed some decline in food and non-alcoholic beverage price inflation. It fell to 14.9% in July from 17.3% in the previous month, a further drop from a 45-year high of 19.2% in March.
Research conducted by the London School of Economics earlier this year indicated that nearly a third of the rise in UK food prices since the end of 2019 could be attributed to post-Brexit trade barriers.
BRC figures indicate that the slowdown in food price inflation is continuing, providing some relief to millions of families suffering from rising prices.
The biggest easing in price pressures came in fresh food, where inflation fell to 11.6 per cent this month, down from 14.3 per cent in July and the lowest in a year, according to the British Retail Consortium.
For ambient food – items that can be stored at room temperature – inflation slowed to 11.3 per cent, down from 12.3 per cent in July and the lowest since January.
Pricing pressures also eased for toiletries and cosmetics as many important ingredients became cheaper. In contrast, inflation in the prices of clothing and shoes rose as retailers wrapped up the intense summer sales season, according to the BRC.
Mike Watkins, NielsenIQ’s head of retail and business, said bad weather in recent weeks had dampened demand, and he expected consumers to remain “cautious about discretionary spending even as inflation slows.”