Food price inflation is being contained by the discounting measures that retailers are adopting, the British Retail Consortium (BRC) has said.
Responding to the news from the Office for National Statistics that inflation has hit 5.2% in the UK, the BRC suggested that the peak of food inflation has been passed. The comments came after the BRC said that food sales values have dipped again.
Because competition is “fierce”, it said, grocery retailers are keen to pass on slowing inflation at a number of levels, whether it be wheat or oil.
Although Stephen Robertson, director general at the BRC added: “The bad news is extraordinary increases in gas and electricity prices are wiping out these gains, pushing overall inflation higher and hurting hard-pressed families and retailers of all sizes.”
Last week, the BRC said that food price inflation dipped for the first since March.
