Food Price inflation Static in UK

Food price inflation rose by 0.1% between May and June, according to Verdict’s Food Price Tracker, which measures food prices based on a sample of 100 products.

While shoppers paid almost the same for their groceries in June as they did in May, this follows two months of price falls.

Food prices are static

And, on a yearly basis, food price inflation in June reached its lowest so far this year at 6.5%. The year-on-year increase is now less than half that reported in earlier months when inflation peaked at 14.1%, says Verdict.

Verdict reports the price breakfast has fallen for the first time since January 2008 too. On average, the cost of making breakfast for a family of four was 5p cheaper in June than it was in May, it says.

Bread has led the price fall with sliced white bread down by 3.1% in June compared with May. Jam and bacon are also reduced in price in June versus May – -2.7% and -2.3% respectively.

Although the reduction is small, it shows food price inflation is starting to go in the right direction, says Verdict.

Neil Saunders, consulting director at Verdict, said: “The fall in the price of breakfast is only small, but is shows things are finally going in the right direction. And the good news is that we expect to see stronger falls as we move through the year.”

Verdict is forecasting breakfast will be around 84p cheaper by the end of the year.