Food prices rose by 0.1% in September, up from -0.2% in August, new research reveals.
The BRC-NielsenIQ Shop Price Index shows fresh food prices fell for the 10th consecutive month in September, with deflation easing to 0.4% from a decline of 0.6% in August. This is above the 12- and 6-month average price growth rates of -0.6% and -0.9%, respectively.
Ambient Food inflation accelerated to 0.8% in September, up from 0.3% in August. This is below the 12- month average price increase of 1.3% and above the 6-month average price increase of 0.6%.
Overall Shop Price annual deflation eased to 0.5% in September compared to August’s decrease of 0.8% – the slowest rate of decline since January 2020.
Mike Watkins, Head of Retailer and Business Insight at NielsenIQ, said: “Disruption in the supply chain and increased input costs are now starting to feed through and food prices increased slightly from last month. However, low prices on seasonal fresh foods are helping to offset rising prices in ambient food.”
Helen Dickinson, Chief Executive of the British Retail Consortium, added: “September saw overall prices fall, but the decline is slowing. There are now clear signs the months-long cost pressures from rising transport costs, labour shortages, Brexit red-tape, and commodity costs are starting to filter through to consumer prices.”
