Food inflation decelerated to 6.7% in December, down from 7.7% in November, new data reveals.
The latest BRC-NielsenIQ Shop Price Index reveals food prices decelerated for the eighth consecutive month and inflation is its lowest since June 2022.
Fresh Food inflation slowed further in December, to 5.4%, down from 6.7% in November, to reach its lowest level since May 2022.
Ambient Food inflation decelerated to 8.4% in December, down from 9.2% in November, and is the lowest since August 2022.
Mike Watkins, Head of Retailer and Business Insight, NielsenIQ, said: “NIQ research showed that low price, quality, and availability were the top factors for shoppers when planning where to do their main Christmas grocery shop this year so the further fall in shop prices will have helped shoppers celebrate the festive season. But there was a lot of pressure on discretionary spend and price discounting was deeper and began earlier not just in the non-food channel but also in food retail, where promotions got back to a four-year high at the end of the year.”
Meanwhile, overall shop price annual inflation was unchanged at 4.3% in December, this is below the three-month average rate of 4.6%. Shop price growth remains at its lowest since June 2022.
Helen Dickinson, Chief Executive of the British Retail Consortium, said: “Overall shop price inflation remained steady in December. Households did have reason to celebrate as food inflation fell for the eighth consecutive month thanks to retailers’ efforts to bring down prices in the run-up to Christmas. There was cause for merriment as prices of wine, port and sherry fell on the month.
“Non-food products had a more challenging December, with price inflation rising again following retailers’ investment in November Black Friday discounting and ahead of the January sales.”
