In April, food prices in the UK continued to rise at the fastest rate in nearly 45 years as inflation declined at a slower-than-anticipated rate.
The annual rate of increase in grocery prices slowed slightly from April 2017 to April 2018. But at 19.1% is close to all-time highs.
Inflation in the UK has reached single digits for the first time since August of last year.
However, the decline was less than anticipated.
The Consumer Prices Index (CPI) inflation rate decreased to 8.7% in April from 10.1% in March, according to the Office of National Statistics (ONS).
The CPI measures the average increase in prices of products, food and services purchased by households in the UK.
Annually, prices increased by 8.7% as of April. This is a decrease from March’s rate of 10.1%, but it exceeds the 8.2% widely predicted by analysts.
The decline was due to the fact that energy price increases are decreasing compared to last year’s extreme increases.
However, this does not imply that prices are falling, only that they are increasing at a slower rate.
As inflation is an aggregate measure, a decrease in the headline rate does not have the same effect on all goods.
Recently, food inflation has exceeded the overall rate of inflation, reaching 19.1% in March.
While inflation is anticipated to decline, food inflation is anticipated to remain relatively elevated.
In a report released earlier this month, the Bank of England warned that “food price inflation is likely to decline more slowly than previously anticipated.”
The Resolution Foundation think tank has issued a warning that food costs are poised to overtake energy costs. As the top financial concern for families this summer.