F
ood costs have fallen on the earlier month for the primary time in additional than two years, bringing grocery inflation all the way down to single digits, in line with newest figures.
Food inflation decelerated to 9.9% in September, a big drop from 11.5% in August, in line with the British Retail Consortium (BRC)-NielsenIQ Shop Price Index, its lowest level since August final 12 months.
The BRC stated “fierce” competitors between retailers, helped by easing value pressures, was behind the autumn.
Consumers who purchased dairy, margarine, fish and greens – all sometimes own-brand strains – would have seen decrease costs than in August, with households additionally benefiting from cheaper faculty uniforms and different classroom necessities.
Fresh meals costs are actually 9.6% larger than a 12 months in the past, down from 11.6% final month, and its lowest price since final July.
Overall store worth annual inflation slowed additional to six.2%, down from August’s 6.9% and its lowest price since September final 12 months.
BRC chief government Helen Dickinson stated: “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.”
Mike Watkins, head of retailer and enterprise perception at NielsenIQ, stated: “With further price cuts by supermarkets in recent weeks, food inflation continues to slow, which is good news.
“However there continues to be pressure on budgets with over half of households still feeling that they are significantly impacted by the continued increases in cost of living.
“So, it will be important for retail sales to keep momentum, which means we can expect more price cuts and increased promotional activity across all retail channels.”
