Food price inflation drops to 15 month low

investmentweek.co.uk:

Overall shop price inflation slowed for the fifth consecutive month to 5.2%, its lowest rate since August 2022. This is likely to bring the headline Consumer Prices Index down from its current level of 6.7%.

Grocery price inflation rose by 8.8% over the year to October, down from September's 9.9% increase, according to the British Retail Consortium (BRC) and NielsenIQ, a sixth straight month of easing.

Overall shop price inflation slowed for the fifth consecutive month to 5.2%, its lowest rate since August 2022. This is likely to bring the headline Consumer Prices Index down from its current level of 6.7%.

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Imported goods saw higher levels of inflation due to a weaker pound, still-high producer costs and emerging trade frictions.

Prices for some domestically produced foods, such as fruit, were lower compared to last month. Prices of children's and baby clothing also fell.

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Helen Dickinson, chief executive of the BRC, said: «Retailers have been battling to keep prices down for their customers in the face of rising transport costs, high interest rates and other input costs.»

Mike Watkins, head of retailer and business insight at NielsenIQ, said inflation has helped the topline sales growth of many food retailers this year but in reality, shoppers have been paying more and buying less.

He added: «And the rest of the retail trade has seen less benefit due to the continued squeeze on discretionary spend.»

This time last year pressure was growing on household incomes as inflation was accelerating in fuel, energy, and food.

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