UK food price inflation has fallen to its lowest point in 14 months.

Figures released by the British Retail Consortium (BRC) show that annual food price inflation in June was 5.6 per cent, compared with 6.4 per cent in May.

The BRC-Nielsen shop price index for June 2009 showed that overall annual shop price inflation was 0.7 per cent in June compared with 1.3 per cent in May and non-food prices were 1.9 per cent lower in June than a year ago and 1.3 per cent lower in May.

Stepehen Robertson, BRC director general, said: “Food inflation is now the lowest it has been for 14 months. That’s largely because of falling fresh food inflation. Sterling’s recent revival is easing the cost of imports and overseas demand for UK produce. Oil prices are up since the start of the year, but half their peak last July. Food inflation is likely to keep falling.”

The strengthening of sterling has had a greater effect on pricing of meat due to export demand being greater that it is for fresh produce. But with input costs reducing as sterling strengthens, this could also be having a knock-on effect on fresh produce price inflation, helping keep it low.

A BRC spokesman told freshinfo: “Food price could keep coming down, In terms of crops it remains to be seen how the summer will shape up, but on average we are having drier, warmer conditions than the last two years and that will boost a number of fruit and vegetable crops to create some downward pressure on prices.”

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