Food inflation rose 0.3% to 2.5% in August from 2.2% in July, according to the British Retail Consortium (BRC).
The BRC said inflation rose due to fresh food prices going back to June levels, after extensive promotions on salads and summer fruit and vegetables had caused a dip in July.
According to the results from the BRC Nielsen Shop Price Index, overall shop prices reported annual deflation for the fourth consecutive month in August, unchanged from the 0.5% decline reported in July.
Non-food sales reported an annual deflation of 2.3% in August, up from 2.1% in July.
Helen Dickinson, BRC director general, said: “There may be some pressures in the pipeline, but I would expect prices to remain fairly stable barring any major shocks in the supply chain. These figures certainly add to the recent run of rosier news, and confirm that retailers are working hard to offer customers the best possible value on their shopping.”
“The good news for shoppers is that many high street and non-food retailers have been holding back on price increases during the summer and even with some seasonal fresh food inflation in August,” said Mike Watkins, head of retailer and business insight, Nielsen. “Overall, shop price inflation at supermarkets is still at one of the lowest levels for three years.”
Elsewhere, Tesco and Dunnhumby’s most recent quarterly report, Consumer Today, stated that the number of consumers agreeing that the economic situation in the UK had improved in the last few months rose from 10% in April to 21% in July.
The report also showed that UK consumer confidence grew, due to the prolonged hot weather, sporting success and early signs of a recovering economy.