The British Retail Consortium (BRC) has revealed food inflation has stayed at 3.1% in September for the third consecutive month.
In the BRC and Nielsen Shop Price Index for September, it also revealed that overall shop price inflation slowed to 1% during the month, compared to 1.1% in August, as well as increased deflation in non-food to 0.2% from 0.1% in the previous month.
Stephen Robertson, director general of the BRC, said: “Falling prices for non-food goods and stable food inflation are slowing overall shop price rises. Food inflation remains at a two-year low for the third month running, despite inflationary pressures building up in the supply chain from rises in global commodities such as wheat and soyabeans.
“These shop price figures show retailers are holding back much of the impact as they battle it out for every bit of spending available from hard-up customers. Promotions, including multi-buy offers, fuel coupons and price matching are commonplace and helping to keep grocery bills down while non-food prices have now been cheaper than a year ago for eight months in a row as prices of furniture, electricals and clothing are cut to generate sales.”
Mike Watkins, senior manager of retailer services, Nielsen, said: “Over the last month, we have seen some welcome stability in food retailing and sales growth has improved a little compared with the early summer. Retailers have maintained the high levels of promotional activity at 35% of sales and food inflation remains at a two-year low point at just over 3%.”