Shop price inflation easing, say top UK retailers before key meeting with MPs

theguardian.com:

Britain’s biggest retailers have said shop price inflation is easing ahead of a crunch meeting with MPs on Tuesday over the soaring cost of groceries, but warned food prices were continuing to rise at near record rates.

The British Retail Consortium (BRC) said annual inflation in overall shop prices eased to 8.4% in June, down from 9% in May, as retailers cut the price of many staples including milk, cheese and eggs. Clothing and electrical goods prices also fell ahead of the summer holidays.

The retail industry is facing growing pressure over the soaring cost of living, after official figures showed the UK’s annual inflation rate – which takes into account price changes for goods and services across the economy – remained unchanged in April at 8.7%.

Senior executives from Tesco, Sainsbury’s, Asda and Morrisons will be questioned over soaring prices on Tuesday by MPs on the cross-party business and trade committee, with a focus on their profit margins, competition in the supply chain and when shoppers can expect to see a significant fall in prices.

Ministers have explored the option of supermarkets adopting a voluntary price cap for the price of basic food items, but have insisted they would not impose limits on the industry.

Ahead of Tuesday’s hearing with MPs, the BRC said the price of staple goods had helped to bring down its monthly shop price index measure of inflation.

It said fresh food inflation slowed to 15.7% in June, down from 17.2% in May. However, this still means food prices are higher than a year earlier, and are continuing to rise at among the fastest rates on record.

Separate research from the consumer group Which? published on Tuesday suggests soaring grocery prices are worsening the mental health of one in