Supermarket price war keeps food prices low

Competition:
Supermarket war keeps prices consistantly low
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Food prices rose by just 0.6% last month - the lowest rise ever according to figures from the British Retail Consortium (BRC).

It reported that food prices rose slightly – compared with non-food which saw the biggest monthly drop since December 2006.

The organisation said the supermarket price war was keeping food price rises in check.

Helen Dickinson, BRC director-general, said: "Fierce competition among grocers has driven food price inflation to record low levels and with some grocers having announced plans to keep prices down, consumers stand to benefit for a while to come.”

Nielsen's head of retail and business insight Mike Watkins said: "Food inflation is still low, many supermarkets are price cutting and non-food prices remain deflationary, so the high street continues to generate little inflationary pressure."

Last week, grocery share figures from Kantar Worldpanel, showed a growth in the market to 2.8%, and equally low inflation rates of 0.8%. 

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