UK Food Inflation Falls to 2.2% for Sixth Consecutive Month in July

According to the UK Retail Consortium, food inflation dropped to 2.2% year-over-year in July, down from 2.4% in the prior month, marking the sixth consecutive month of decline. The improvement was supported by promotional activity on snacks and alcoholic beverages during the World Cup period.

Retail price index fell to 0.9%, a six-month low, driven by summer clearance sales of clothing and footwear, while fresh food prices rose 3.1% compared with 2.8% in June. Retail Consortium CEO Richard Dickinson noted the data is "good news for families," but warned that labor costs, packaging taxes, geopolitical tensions, and climate disruptions could push prices higher in the second half of the year.