According to the British Retail Consortium (BRC), food inflation remained unchanged on the year as prices were driven up by non-food inflation.
Food inflation was unchanged at 4.2% year-on-year in September, against growth of 4.2% in August. This was above the three-month average of 4.1%.
Similarly, fresh food inflation was unchanged at 4.1% year-on-year in September, which was against growth of 4.1% in August, up on the three-month average of 3.8%.
Ambient food inflation was 4.2%, unchanged year-on-year from its September ambient food inflation. This was against growth of 4.2% in August, and below the three-month average of 4.5%.
Helen Dickinson, chief executive of the BRC, said: “A year and a half of non-food deflation looks set to come to an end, as inflationary pressures spread beyond food.
“Food inflation held steady after seven consecutive months of rises but increased labour and energy costs continue to push up input prices for many farmers, particularly of cattle, with dairy and beef prices remaining high.
“Households are finding shopping increasingly expensive. The impact on retailers and their supply chain of both global factors and higher national insurance and wage costs is playing out in prices for consumers. The new packaging tax, set to take effect in October, will put further upward pressure on inflation.
“While retailers continue to absorb higher costs as much as possible and deliver value to customers, any further tax rises in the upcoming Budget would keep shop prices higher for longer. Ultimately, it is British households who will bear the consequences – positive or negative – of the Chancellor’s decisions.”
Mike Watkins, head of retailer and business insight, NIQ, said: “With inflationary pressures persisting, many shoppers remain concerned about their personal finances and are becoming increasingly price-sensitive. As a result, retailers are likely to continue offering promotions and deals in the coming weeks to help maintain sales momentum.”
