Food inflation eases to give shoppers some respite

Food inflation eased slightly in January, according to official figures.

The cost of fresh produce rose only marginally in the year to January, according to the government’s Consumer Price Index, while the cost of milk, cheese and eggs increased by less than 2% over the 12-month period.

By contrast, oils & fats surged in price by almost 10% over the year to January, while meat was up 5.7% and bread and cereals up 3.4%.

Combined, the CPI showed inflation of 3.6% in the year to January, down from an annual rate of 4.2% in December.

Analysts at Shore Capital said the fall “while expected, should be considered as moderately good news for the embattled British consumer”.

“Whilst wages and are still rising at 2% a year, meaning real living standards are still falling, the gap between price rises and changes to incomes is narrowing,” said Shore’s Clive Black.

“This means most UK households are not seeing their spending power erode at quite the rate it has been over the last couple of years.”

Black added: “Assuming no jump in oil prices, sterling weakness or disruption to major food commodities, this process can be expected to continue. The outcome of such trends may start to be reflected in consumer confidence.”