In June, food and non-alcoholic beverage inflation in the UK declined, marking the 15th consecutive month of this trend.
The annual inflation rate dropped to 1.5%, down from 1.7% in May and significantly lower than the 17.4% recorded a year ago.
This represents the lowest rate since October 2021, although prices increased by 0.2% monthly.
The inflation picture varies across different food categories. Of the 49 categories the Office for National Statistics (ONS) monitored, 18 experienced deflation, while 20 had inflation rates below 5%.
Some products saw notable price decreases, with jams and marmalades leading at -7.7%, followed by whole milk at -6.8%, and butter at -5.2%.
Conversely, certain items witnessed substantial price hikes, particularly olive oil with a 43.8% increase, cocoa and powdered chocolate at 18.3%, and edible offal rising by 13.2%.
This mixed scenario underscores the complex nature of food price dynamics, with some staples becoming more affordable while others face significant cost pressures.
Karen Betts, CEO, The Food and Drink Federation said: “We’re pleased to see food and drink price inflation continuing to fall. This is key to easing the cost-of-living crisis for households across the UK and crucial for business recovery.
“Stabilising input costs will help to restore business confidence and stimulate the critical investment we need to see in food and drink, the largest manufacturing industry in the UK.Â
“Our industry is at the heart of the everyday economy and the prosperity of our communities and central to job opportunities and skills development.
“Investment is key to safeguarding food security and the resilience of our food and drink sector.
“Investment in food and drink manufacturing fell between 2019 and 2023 by 30%.
“Our priority is to work in partnership with the new government to address this and to ensure that the right incentives are in place, alongside regulation that enables business growth and fosters productivity and innovation.”