“If the current situation continues, food inflation should drop to single digits later this year.” BRC chief executive Helen Dickinson said.
Retailers cut the price of staples such as milk, cheese and eggs while clothing and electrical goods also saw falling prices, she said.The Bank of England last week raised borrowing costs to their highest since 2008, taking its benchmark Bank Rate to 5 percent, as it ramped up its fight against inflation that has fallen more slowly than it hoped.
“If global supply chain costs continue to fall, we may now be past the peak of price increases,” Mike Watkins, Head of Retailer and Business Insight at NielsenIQ which co-produces the data, said. “However, with most households needing to save money, purchasing behavior for the rest of this year is still likely to shift towards essential needs with discretionary consumption being de-prioritized or delayed.”