Inflation set to fall below double digits for first time since August

Inflation is set to FINALLY fall below double digits for first time since August, but food prices are set to keep rising as pressure, experts warn

• Figures expected to show consumer price index rose by 8.3% in the year to April
•  Jeremy Hunt has vowed to halve inflation by end of the year as energy bills drop

Inflation is set to fall below double digits for the first time since August last year – but rising food prices will continue to squeeze household budgets, experts warn.

Figures on Wednesday are expected to show the consumer price index rose by 8.3 per cent in the year to April.

This is down from 10.1 per cent in March.

It means prices are continuing to rise across the board, only more slowly.

It is good news for Chancellor Jeremy Hunt, who has vowed to halve inflation by the end of the year as energy bills drop. 

Chancellor Jeremy Hunt has vowed to halve inflation by the end of the year as energy bills drop

But economists are concerned that families will find it increasingly hard to pay for the supermarket shop. 

The cost of groceries has risen significantly, hitting 19.1 per cent in March – a 45-year high.

Supermarket bosses have been accused of ‘greedflation’. 

And research from the Institute of Grocery Distribution trade group suggests food inflation will stay ‘sticky’ above ten per cent for the rest of the year. 

The Resolution Foundation think-tank says food prices will become the new front line in the cost-of-living crisis.

‘This summer the food price shock to family finances is set to overtake that from energy bills,’ said its economist Lalitha Try. 

‘What remains consistent is that those on low-to-middle incomes are worst affected.’

The average £1,000 rise in food costs since 2019 will surpass the £900 increase in energy bills. 

The Bank of England warned high grocery prices could lead to further hikes in the 4.5 per cent cost of borrowing.

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