Legal & General : Falling food prices keep inflation low

Food prices tumbled for the 13th successive month in July, helping to keep overall inflation low.

Figures from the Office for National Statistics (ONS) show the Consumer Prices Index (CPI) measure of inflation was slightly higher during the month, edging up from zero due to weak summer clothing sales.

But the nation's biggest supermarkets continued to cut prices on their shelves, in a bid to entice shoppers.

The cost of food and non-alcoholic beverages consequently fell 2.7% year-on-year, which held back CPI.

It is the longest run of falling food prices since records began in 1989, meaning money is stretching further at the tills.

The ONS data also reveals the Retail Prices Index inflation rate remained at 1% during July - the lowest figure for the month since 2009 - offering good news for passengers as it is used to set annual regulated train fare rises.

This article was written by the Press Association, for Legal & General. Please note the views expressed in this article are not necessarily the views of Legal & General and its group of companies.

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