A fall in fresh food prices saw food inflation drop to 1.3% in February, according to the latest report from the British Retail Consortium (BRC).
Stephen Robertson, British Retail Consortium director general, said: “This is great news for customers. Food inflation is now at its lowest for at least three years – 12 months ago it was seven times higher. This drop has largely been driven by falling fresh food prices, mainly vegetables and fish.
“Previous falls in the value of the pound and large commodity price increases, which were pushing up food prices, have now largely worked through. Barring any lasting shocks, the price of food should continue to be relatively stable for some time.”
The fall in food inflation had the largest impact on the overall rate of shop price inflation in February, its lowest rate since the inception of the index in December 2006.
This time last year food inflation was 9.0% as the effect of past falls in sterling were at full force. So annual comparisons are certainly against strong rates last year, however, fresh food prices are now falling year-on-year.
Non-food inflation remained the same at 1.9% in February compared with the previous month.
