Annual food price inflation has fallen sharply in the last month, according to the latest statistics released by the British Retail Consortium (BRC) and Nielsen.
In October, annual food inflation slowed from 9.1% the month before to stand at 7.5%, the duo said.
On a month-to-month basis, prices were down by 0.1% between October and September.
Drops were seen in both the ambient and fresh food categories, with annual inflation now at its lowest level since June.
But the BRC and Nielsen said that “pressures still remain intense” even though the fall in the price of global commodities, such as oil, is beginning to feed through the supply chain.
BRC director general Stephen Robertson welcomed the fall in food price inflation and said the upward trend is starting to change.
He commented: “After a painful climb to the food inflation peak we’re now accelerating down the other side. Food inflation is falling. It’s falling more rapidly and we’re now at the lowest rate since May.”
Nielsen senior manager, retail services, Mike Watkins said: “Shop price inflation continues to slow with consumers seeing the benefit of heightened retailer competition. Price cutting and promotional activity are intensifying in the lead up to Christmas.”
The grocery sector is still is absorbing some cost increases, the Shop Price Index found, because producer price inflation is 12.7% (higher than shop price food inflation).
Last week, the English Food and Farming Partnership said food prices will remain volatile in the coming year despite a drop in inflation.
