Stories

Wed, 22 Jul 2026

Wed, 22 Jul 2026 Some food prices have fallen – but inflation expected to rise from here

June's fall in inflation will be welcomed by the new prime minister but analysts warn the fall is temporary.

* Food prices have fallen by 0.2% month-on-month and some staples such as sugar, chocolate and confectionery saw large drops in price.
* Beef and veal price inflation eased from 9.4% to 5.1%, while edible offal slowed from 9.2% to 3.4%.
* Pizza and quiches fell by 6.7% in the year to June, while margarine dropped by 1.9%.
* Supermarket price wars have driven down prices, with intense competition between retailers.
* Lower fuel costs, particularly lower diesel prices, also pushed inflation down.
* The UK's overall inflation rate has fallen to 2.6%, its slowest rate in nearly two years.
* Analysts warn that the fall is temporary and that higher energy prices in July will push inflation back up.
* The new Prime Minister Andy Burnham and Chancellor John Healey have pledged to make the cost of living a priority for their government.
* The Bank of England's target of 2% inflation rate has not been met, but economists believe a rate increase is unlikely when the Bank meets next week.