According to the British Retail Consortium (BRC), food inflation has risen to 2.3% in September due to “poor harvests in key producing regions”.
Shop price deflation was at 0.6% in September, down from deflation of 0.3% in the previous month. This was below the three-month average rate of -0.3%, with shop price annual growth at its lowest rate since August 2021.
Food inflation rose to 2.3% in September, up from 2% in August, which was above the three-month average rate of 2.2%. BRC said that the annual rate had “continued to ease” in this category.
Fresh food inflation accelerated in September to 1.5%, up from 1% in August. Inflation has returned to its June 2024 rate, and was above the three-month average rate of 1.3%.
However, ambient food inflation decelerate to 3.3% in September, down from 3.4% in August. This was below the three-month average rate of 3.4%, remaining at its lowest since March 2022.
Consumers welcome easing inflation
Helen Dickinson OBE, chief executive of the BRC, said: “September was a good month for bargain hunters as big discounts and fierce competition pushed shop prices further into deflation. Shop price inflation is now at its lowest level in over three years, with monthly prices dropping in seven of the last nine months.
“Food inflation edged up slightly as poor harvests in key producing regions led to higher prices for cooking oils and sugary products.
“Easing price inflation will certainly be welcomed by consumers, but ongoing geopolitical tensions, climate change, and Government-imposed regulatory costs could all reverse this trend.”
