Like-for-like grocery inflation fell to its lowest level since 2022 during the four weeks to June 11 and now sits at 16.5 per cent, but a large majority of households remain either "extremely" or "very worried" about rising food prices.
Latest figures from market research group Kantar show that the value of UK take-home grocery sales rose by 10.8% over the month when compared to the same period a year ago.
Kantar's head of retail Fraser McKevitt said of the top five financial worries that consumers have, rising grocery prices is the only one that they are more concerned about now than at the start of this year.
Nearly 70% of households are either "extremely" or "very worried" about food and drink inflation compared to just over two-thirds when asked the same question in January. It remains the second most significant concern, narrowly behind rising energy bills.
“This is the lowest rate of grocery price inflation we’ve seen in 2023, which will be a relief to shoppers and retailers," Mr McKevitt said. "But prices rising at 16.5% isn’t something to celebrate and it’s still the sixth-highest monthly figure in the past 15 years."
READ MORE: Food prices: The stark reality of Brexit's sunny uplands
The figures came this morning as separate research showed that production costs for food and drink manufacturers fell in May for the first time in seven years.
The Bank of Scotland said the decline as measured by its UK Sector Tracker was supported by a 2.6% fall in global commodity prices, which was driven by steep falls in the price of vegetable oils, cereals and dairy products.
“If production costs continue to fall, whilst welcome, it will still take some time before we see the benefit in terms of shelf prices," said Annabel Finlay, director of food and drink at Lloyds Bank Commercial Banking. "This is, in part, due to the long-term nature of contracts between the manufacturers and retailers, as well as the broader segments of the production chain.
“With the continued risk of future disruption to supply chains that could mean input costs rising again, food and drink manufacturing companies should continue to review their supply relationships and optimise their working capital to help shield against any market shocks and build ongoing resilience.”
Sterling Furniture Group reveals new chief executive
Sterling Furniture Group has this morning revealed its new chief executive.
The Tillicoultry-based home furnishing retailer has hired industry veteran John Pattison to lead the business, which is currently in its 50th year of trading.
Mr Pattison has operated as a board director for more than 20 years and most recently spent four years as commercial director of ScS, the Sunderland-based sofa and furniture retailer, initiating the roll-out of its concept stores around the UK.
Logistics firm CCL hires staff and grows
An Ayrshire supply chain management and logistics services group is aiming for annual turnover of more than £100 million within the next few years, after hiking revenues by 21 per cent to £35.6 million in 2022.
Troon-based CCL Logistics & Technology, which is majority-owned by founder and chief executive Callum Bastock, is targeting revenue of around £45m in its current financial year to December 31, 2023, in spite of what it describes as a “challenging industry backdrop”.
It plans to further increase its workforce, and expects to make an acquisition by the end of this year.
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