Food prices increased by 1.3% in August on the same month last year, according to the latest BRC – Nielsen Shop Price Index. This was a slight increase on July’s figure, when Food price inflation stood at 1.2%.
Fresh Food inflation slowed to 0.8%, down from July’s 1.0% and the second month in a row that the rate has eased.
However, Ambient Food prices grew by 1.9% in August from 1.6% in July. This is the highest inflation rate for Ambient Food since December 2013.
Taking Non-Food products into account Overall Shop Prices fell by 0.3 per cent in August, a slight deceleration from July’s 0.4% drop. Except for June of this year, this is the shallowest deflation rate since November 2013.
Helen Dickinson, Chief Executive of the British Retail Consortium said the slowdown in Fresh Food inflation kept a lid on overall price increases.
“The seasonal availability of fruit and vegetables from UK suppliers is currently shielding shoppers from the impact of higher import prices,” she added. “However, as Winter approaches and our dependence shifts to imported goods, that will change.”
Mike Watkins, Head of Retailer and Business Insight at Nielsen, said spend on food and drink had been strong over the summer, albeit disrupted by the changeable weather.