While food price inflation slowed to 8.8 percent this month from September’s 9.9 percent, prices still remain four times higher than the average rate of the past 34 years.
Food inflation in the UK averaged 2.92 percent from 1989 until 2023 before reaching an all-time high of 19.1 percent in March, according to Trading Economics.
But while prices remain high, the figures from the British Retail Consortium (BRC)-Nielsen Shop Price Index reflect there has been a sixth consecutive deceleration and have now dropped to their lowest rate since last July.
Fresh food inflation has slowed even further to 8.3 percent, down from 9.6 percent a month earlier.
Meanwhile, inflation on non-food items has fallen to 3.4 percent from 4.4 percent, its lowest rate since last September.
Mike Watkins, head of retailer and business insight at NielsenIQ, commented: “Inflation has helped the topline sales growth of many food retailers this year but, in reality, shoppers have been paying more and buying less.
“And the rest of the retail trade has seen less benefit due to the continued squeeze on discretionary spend.
“This time last year pressure was growing on household incomes as inflation was accelerating in fuel, energy, and food so, as inflation continues to decelerate, we now need an uptick in sentiment to help retail sales over the next eight weeks.”
More to follow…
