UK food inflation eased for a sixth consecutive month in July to 2.2% YoY from
2.4%, helped by World Cup-led promotions in snacks and alcohol, the British
Retail Consortium said. Despite higher energy costs linked to Middle East
tensions, overall domestic price pressures remained moderate: the shop price
index fell to 0.9% YoY, a six-month low, dragged down by summer clothing and
footwear clearance, while fresh food prices rose 3.1% YoY (June: 2.8%).
Dickinson, chief executive of the British Retail Consortium, called July’s
reading 'good news for households' but warned that labour costs, a packaging
tax, geopolitical conflict and climate disruptions could push prices up in H2.