Overall shop price in flation in the United Kingdom slowed in July to 1.0 percent from 1.1 percent in June, the British Retail Consortium reported Wednesday.
Food inflation declined in July to a two year low of 3.1 percent from 3.5 percent in June.
Non-food goods were lower in price than a year ago for a sixth straight month.
"A two-year low for food inflation is good news for hard-pressed households still suffering falls in disposable incomes. Lower shop price inflation is helping to narrow the gap between living costs and wage increases," said BRC Director General Stephen Robertson.
He warned that the price relief may not last. "Poor harvests, especially of corn and wheat in the USA, are creating a build-up of inflationary pressure. Animal feed has risen sharply in recent months and is likely to affect prices for things like meat, poultry and eggs."
by RTT Staff Writer
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