Cost of Living: Food Price Inflation Continues to Fall

By Admin August 16, 2023

Summary:

Food inflation has fallen for the fifth consecutive month, albeit not as rapidly as before.
Staple items like milk and sunflower oil have seen price decreases, providing some relief for shoppers.
Branded goods, including popular items like chocolate slices and cheddar, have witnessed significant price spikes.
The Bank of England's chief economist anticipates that food prices may not return to pre-pandemic levels.

When it comes to how much we pay for what we eat, things are moving in the right direction, with food inflation falling for the fifth consecutive month. But with some products, the prices keep on soaring. The high price of animal feed, fertilizer, and fuel, as well as energy and labor costs, are partly to blame for the increase.

Food Inflation Trends

You can see how food inflation rose to a peak in March and then began to dip. The latest figures show a fall to 12.7%, the second sharpest monthly decrease since Cantor started monitoring grocery inflation 15 years ago. So prices are still going up, just not as rapidly as they were.

Staple Items' Price Changes

A more detailed look shows that some staple items are actually falling in price. Shoppers are now paying £1.50 for four pints of milk, for example, 19p less than last month. Sunflower oil is down 22p to £2.19, a relief for cash-strapped shoppers, but the average household is still spending £5.13 more per week on groceries than they were this time last year.

Branded Goods and Soaring Prices

A part of the problem is branded goods. Research from the consumer group has found that some prices are soaring. For example, a six-pack of Mr. Kipplin chocolate slices at Tesco increased a whopping 129% in the last year, up from £1.16 to £2.66. Pilgrim's Choice Cheddar rose by 76%, and the Kilo Pot of Lancashire Farm Natural Yogurt jumped 80%.

Future Outlook

So, overall, inflation is slowing. But the reality is food prices are likely to remain high for the rest of the year. According to the Bank of England's chief economist, they may never get back to where they were before the pandemic.

In conclusion, while food inflation has decreased in recent months, certain products continue to experience price increases. Consumers are observing changes in prices for staple items and grappling with the rising cost of branded goods. The future outlook suggests that food prices may remain elevated, reflecting the ongoing economic challenges.