Biggest drop in UK grocery price inflation since the peak

Newsflash: UK grocery price inflation has dropped to its lowest level this year.

A supermarket in London, Britain. Photograph: Andy Rain/EPA

Analysts at Kantar have reported that average supermarket prices were 14.9% higher than a year ago in the four weeks to 9 July.

That’s a drop from the 16.5% recorded in the previous four weeks, and its steepest decline since inflation peaked at 17.5% in March.

It suggests that the drop in commodity prices, and the easing of other cost pressures, could now be feeding through to customers (a trend that is expected to continue, as covered earlier).

Fraser McKevitt, head of retail and consumer insight at Kantar, said:

“This will be good news for many households although, of course, the rate is still incredibly high.