Consumers curb spending even as grocery costs ease

Britons have cut back on their supermarket shopping and traditional summer purchases because of the recent cool weather, even though grocery price inflation has slowed further, according to a report.

- Julia Kollewe

Supermarket prices were 2.1% higher than a year ago in the four weeks to 9 June, according to the retail researchers Kantar. This was down from the 2.4% inflation rate in May, and marked the 16th month that price rises had slowed.

Kantar found costs were falling in nearly a third of the categories it tracked, including items such as toilet tissue, butter and milk. Last year just 1% of categories showed price falls.

The monthly report has come before the official UK inflation figures for May, which will be given today. Headline inflation is expected to fall from 2.3% in April to 2%, the government-set target level.

Fraser McKevitt, head of retail and consumer insight at Kantar, said that despite falling grocery inflation, the cost of living crisis "was not over-far from it". He said 22% of households said they were struggling, unable to cover their expenses or just make ends meet.