Food prices have fallen for the first time in two years thanks to “fierce competition” between supermarkets
The British Retail consortium said thatShop Price annual inflation decelerated further to 6.2% in September, down from 6.9% in August.
Shop price growth is at its lowest since September 2022.
Non-Food inflation eased to 4.4% in September, down from 4.7% in August.
Helen Dickinson, OBE, Chief Executive of the British Retail Consortium, said:
“Food prices dropped on the previous month for the first time in over two years because of fierce competition between retailers. This brought year-on-year food inflation down to single digits and contributed to the fifth consecutive monthly fall in the headline rate, helped by easing cost pressures. Customers who bought dairy, margarine, fish and vegetables – all typically own-brand lines – will have found lower prices compared to last month. Households also benefitted from price cuts for school uniforms and other back-to-school essentials
“We expect Shop Price Inflation to continue to fall over the rest of the year, however there are still many risks to this trend – high interest rates, climbing oil prices, global shortages of sugar, as well as the supply chain disruption from the war in Ukraine. Retailers will continue to do all they can to support their customers and bring prices down, especially as households face being squeezed by higher energy and mortgage bills.”
