Shop price inflation reaches lowest point in a year
Ambient food inflation decelerated to 10.4% in September, down from 11.3% in August reaching its lowest level since December 2022
Shop price annual inflation dropped to 6.2% in September, down from 6.9% in August, reaching its lowest point since September 2022, according to data from the British Retail Consortium (BRC).
The BRC has put this decrease down to competition between retailers causing prices to drop.
Non-food inflation eased to 4.4% in September, down from 4.7% in August and below the three-month average rate of 4.6%, reaching its lowest point since December 2022.
Fresh food inflation slowed further in September, to 9.6%, down from 11.6% in August, below the three-month average rate of 11.5% but inflation in this category remains elevated.
Ambient food inflation decelerated to 10.4% in September, down from 11.3% in August reaching its lowest level since December 2022.
Helen Dickinson, OBE, 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.”
She added: “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.”
