Food price inflation at its lowest level since August 2022

Between August and September, it saw a more than one percent decline going from 11.5% to 9.9% between the two months. This figure is below the three-month average rate of 11.4%, with this also being the fifth consecutive deceleration in the food category.

 
Shop price annual inflation, meanwhile, decelerated further from 6.9% to 6.2% – pushing shop price growth down to its lowest level since September last year. Non-food inflation also eased, going from 4.7% to 4.4%.  

Helen Dickinson, chief executive of the BRC, 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.”