Pressure on food prices from weak pound eases
The chairman of Tesco has warned food prices are "very likely" to rise as a result of Brexit
Food prices have rolled back from a three-and-a-half-year high as pressure from the Brexit-hit pound eased last month, new figures show. Overall shop prices fell by 0.4% in July in contrast to 0.3% the month before, according to the latest British Retail Consortium-Nielsen Shop Price Index.
Growth in the cost of food slowed to 1.2% last month after reaching its highest level since January 2014 throughout May and June at 1.4%. Fresh food prices also decelerated to 1% in July, following growth of 1.4% in June.
Helen Dickinson, chief executive of the British Retail Consortium, said: “July saw lower food price inflation than in June, bringing the march of overall shop prices towards inflationary territory to a halt, for now at least.
“Lower food price inflation in July was, in part, the result of the easing of upward pressure from the currency depreciation on fresh food.”