British households received a significant financial reprieve last month as shop food prices experienced their sharpest annual fall in nearly two decades.
According to the latest data from the Office for National Statistics (ONS), the cost of food in shops dropped by 2.4% in the 12 months to June 2024. This represents the most dramatic decline since the ONS first began recording this data series in 2005.
Chancellor Sees 'Brighter Future' for Households
Chancellor Rachel Reeves welcomed the news, stating it signals a 'brighter future for family finances' after years of squeezed budgets. The figures provide the first major economic boost for the new Labour government, which has made tackling the cost of living a central priority.
The ONS report indicates that falling bread, cereal, and fish prices were the primary drivers behind this deflationary trend, offering tangible relief at supermarket checkouts across the nation.
A Turning Point for Consumer Spending
This unprecedented drop in food costs marks a potential turning point for consumer spending power. For months, soaring grocery bills have been a major component of the wider cost-of-living crisis, eating into disposable income and putting pressure on household budgets.
The new data suggests that the economic landscape is shifting, potentially allowing families more flexibility in their spending and providing a boost to overall economic confidence.
