Retail milk prices have fallen in recent months, with consumers paying 11% less for milk in July than in March.

The average price for four pints of milk fell to £1.50 in July, down from £1.69 in March, according to data from research analyst Kantar.

Meanwhile, farmgate milk prices have fallen by about 30% since the beginning of the year, and many dairy producers are making a loss as prices fall below costs of production.

Kantar data showed that overall food price inflation fell by 2.2 percentage points to 12.7% in the four weeks to 6 August.

The firm said that this latest slowdown in price rises is the second sharpest monthly fall since records began in 2008.

Fraser McKevitt, head of retail and consumer insight, said: “Prices are still up year-on-year across every supermarket shelf, but consumers will have been relieved to see the cost of some staple goods starting to edge down compared with earlier in 2023.”

Own-label ranges have continued to outperform branded products at retailers as consumers look to limit spending.