The latest figures from the Office for National Statistics (ONS) have shown a fall in food inflation covering the month of July 2026.
The figure has now fallen to 1.3%, the ONS announced this week, which has taken it to its lowest level for two years.
In response, the Institute of Grocery Distribution (IGD) has commented, warning that many retailers may well be absorbing the cost of inflation themselves, and that future rises may still be on the cards.
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James Walton (left), chief economist at IGD, said: “[The drop] is welcome news for shoppers, particularly as overall inflation strengthened due to utility prices and changes to the energy price cap.
“The drop in food inflation may reflect a combination of retailers absorbing costs to protect shoppers from further price increases and plentiful food supply at the start of the year providing a temporary cushion.
“However, the wider industry backdrop remains challenging, with energy markets disrupted by the Middle East conflict, rising regulatory costs, extreme weather affecting food production and higher farm input costs which have not yet fully fed through the supply chain.
“These pressures suggest food inflation will rise in the coming months as their impact filters through, and businesses should continue to monitor this closely.”
You can read more about the change in rates in full here.
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