19 August 2015

People's food shopping bills are 2.7% lower than they were this time last year, new official figures show.

With fierce competition between UK supermarkets continuing, the price of food and non-alcoholic drinks dropped for the 13th month running in July.

That represents the longest stretch of continuing food price falls since the data was first recorded 26 years ago.

And the continuing food deflation has helped put the brakes on the overall rate of inflation, the Office for National Statistics figures show.

The Consumer Prices Index (CPI) rate of inflation edged up to 0.1% in July - compared to the zero rate recorded in June - but it would have been higher had it not been for the further fall in food prices.

And while shoppers enjoy the benefits of lower food prices, commuters are set to benefit from a separate measure of inflation.

Last month's Retail Prices Index rate - used to regulate yearly rail fare increases - remained at 1%, its lowest July rate for six years.

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.

Copyright Press Association 2015

distributed by