UK Food Inflation Hits Lowest Level Since 2021 Amid Ongoing Supply Chain Concerns

Food and non-alcoholic beverage inflation in the UK eased to 1.3% in July, down from 1.7% in June, according to the Office for National Statistics (ONS). This marks a low not seen since September 2021.

The easing of food-price growth contrasts with the broader rise in headline UK CPI inflation, which increased to 2.9% in July from 2.6% in June, driven in part by higher household energy costs.

Dr Liliana Danila, Chief Economist at the Food and Drink Federation (FDF), attributed the decline in food inflation to both the time it takes for supply-chain disruptions to pass through to consumer prices and the fact that food manufacturers have adapted contracts and diversified suppliers to keep costs down.