UK food inflation fell to a 15-month low, easing cost pressures and reducing the
case for Bank of England tightening. Data on Tuesday showed UK food prices rose
2.4% YoY in early June, down from 2.7% the prior month, as fresh-food inflation
eased; overall retail price growth remained 1.2% YoY. The British Retail
Consortium said strong harvests and competition helped keep prices for summer
items lower. Private and official indicators had shown inflation steadier than
expected before a preliminary US‑Iran peace agreement pushed oil prices lower.
Markets are no longer fully pricing Bank of England rate hikes this year; they
had briefly priced three-to-four 25bp moves.
