Food inflation decelerated to 9.9% in September – down from 11.5% in August – the lowest since August 2022, new data reveals.
The latest BRC-NielsenIQ Shop Price Index shows fresh food inflation slowed further in September, to 9.6%, down from 11.6% in August, the lowest level since July 2022.
In addition, ambient food inflation decelerated to 10.4% in September, down from 11.3% in August, the lowest since November 2022.
Helen Dickinson, 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.”
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.”
Mike Watkins, Head of Retailer and Business Insight at NielsenIQ, said: “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.”
