Food prices in the UK are still rising at their fastest rate in nearly 45 years, even as inflation eases.
Image source, Getty ImagesFood prices in the UK continued to surge at the fastest rate in nearly 45 years in April as inflation fell at a slower pace than expected.
The rate at which grocery prices rose slowed marginally in the year to April, but at 19.1% is close to historic highs.
It comes as the overall UK inflation rate fell sharply to hit single figures for the first time since last August.
However, it did not decline as much as expected.
Prices rose by 8.7% in the year to April, according to the Office for National Statistics (ONS).
This is down from 10.1% in March but above the 8.2% figure widely forecast by analysts.
The drop is due to the fact that energy price rises are slowing from the extreme hikes seen a year ago just after Russia, a major oil and gas producer, invaded Ukraine and was hit with sanctions.
However, it does not mean prices are coming down, only that they are rising less quickly.
The ONS said some vegetables were more expensive than a year ago, including potatoes.
However, it said that while food price inflation was still close to its recent peak, the price of staples like bread, cereal, fish, milk and eggs had fallen.
“If you look at what prices businesses are facing and how much they’re paying for domestic food materials, that has come down from over 15% annual last month to under 10% this month,” ONS chief economist Grant Fitzner said.
The prices that companies are paying for import of foods have also fallen “considerably”.
However, he said: “Of course, those aren’t reflected on supermarket shelves yet.”
Retailers claim that falling wholesale prices take time to filter through to supermarket shelves due to the long-term contracts they typically sign with food producers.
Chancellor Jeremy Hunt met food manufacturers on Tuesday to discuss the cost of food and look for ways to ease the pressure on households.
This follows the Competition and Markets Authority opening an investigation into the pricing of food and fuel at UK supermarkets.