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Consumer Price Inflation data shows food prices have risen in May

Today the Office for National Statistics released their monthly consumer price inflation (CPI) data, finding that inflation fell slightly compared to April, largely driven by a fall in the cost of petrol and recreational goods. The drop is likely due to the continuing impact of Covid-19, and means that UK inflation currently stands at its lowest rate for four years. However, this downward trend was partly offset by a rise in the price of food and drink, the only category where inflation increased. Food and drink prices rose by 0.5% this year compared with a smaller rise of 0.1% a year ago. Our analysis of fruit and vegetables in the CPI basket of goods, shows a more nuanced picture. The price of vegetables fell by 3.66% compared to April, which saw an increase of 6.25% compared to March. Given that the CPI index tracks a number of homegrown British vegetables, this slight fall in average retail prices may reflect the fact we are currently in the British Harvest season. The average retail price of fruit however, increased very slightly compared to April, by 0.33%. In order to track the price of fruit and vegetables in the round, we are also tracking the Agricultural Price Index which reports on farm price data, which shows the the price farmers receive for fruit has increased while prices for vegetables has stayed much the same.

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