Shop Price Inflation Slows to 18-Month Low

Despite the slowdown, many households yet to feel the benefits as food prices continue to rise over 6% annually.

Shop price inflation fell to 2.9% in January, down from 4% in December, marking the slowest rate of increase in over 18 months.
Lower prices for tea and milk, along with post-New Year discounts, contributed to the decrease in inflation.
Despite the slowdown, average food prices are still rising by more than 6% a year, and many households have not felt the benefit of lower inflation.
Rising geopolitical tensions and other cost pressures, such as the increase in the National Living Wage and business rates, could hamper progress in slowing price rises.
Despite high inflation rates, there is hope that headline inflation could fall closer to the Bank of England's 2% target as energy bills are predicted to decrease in 2024.