British shop price inflation has eased this month, offering some relief to households grappling with a surge in living costs and higher borrowing expenses, according to a survey released on

Tuesday.

The British Retail Consortium (BRC) reported that prices in supermarkets and retail chains rose by 8.4% in June compared to the same month last year. This marks a slowdown from May's annual increase of 9.0%, which was the highest rate recorded since the BRC began keeping records in 2005.

This decline in shop price inflation is the second observed this year, following a slight dip in April.

While food prices continued to rise, the pace of increase has moderated for the second consecutive month. However, at 14.6%, the ongoing rise still poses a significant strain on many households.

BRC Chief Executive Helen Dickinson stated, "If the current situation continues, food inflation should drop to single digits later this year."

Retailers have reduced prices for essential items such as milk, cheese, and eggs, while clothing and electrical goods have also seen falling prices, according to Dickinson.

Tesco, the largest retailer in Britain, recently announced that food inflation had reached its peak.

Last week, the Bank of England raised borrowing costs to their highest level since 2008, pushing the benchmark Bank Rate to 5%, as part of its intensified efforts to combat inflation that has been declining at a slower pace than anticipated.

"If global supply chain costs continue to decline, we may have surpassed the peak of price increases," said Mike Watkins, Head of Retailer and Business Insight at NielsenIQ, which co-produces the data.

"However, given that most households need to save money, purchasing behavior for the remainder of this year is likely to prioritize essential needs, with discretionary spending being deprioritized or postponed." Photo by J Taylor / Tesco Supermarket, Osterley, London. / CC BY-SA 2.0, Wikimedia commons.