Food inflation decelerated to 5.0% in February, down from 6.1% in January, and it the lowest since May 2022, new data reveals.
The latest BRC-NielsenIQ Shop Price Index shows fresh food inflation slowed further in February, to 3.4%, down from 4.9% in January – the lowest since February 2022.
Ambient food inflation decelerated to 7.2% in February, down from 7.7% in January, and is the lowest since July 2022.
Mike Watkins, Head of Retailer and Business Insight, NielsenIQ, said: “Since the start of the year, food retailers in particular have reduced prices as well as passing on price cuts coming through supply chains. For high street retailers faced with weaker demand, keeping prices stable over the next few months will be key to encourage customers to spend.”
Helen Dickinson, Chief Executive of the British Retail Consortium, added: “Food prices fell month-on-month with drops in fresh food including meat, fish and fruit. This was driven by easing input costs for energy and fertiliser while retailers competed fiercely to keep prices down.
“Easing supply chain pressures have begun to feed through to food prices, but significant uncertainties remain as geopolitical tensions rise. Prices of non-food goods will be more susceptible to shipping costs, which have risen due to the re-routing of imports around the Cape of Good Hope.”
