Shop price growth is currently at its lowest since September 2022, with non-food inflation easing to 4.4% in September. This marks a decrease from 4.7% in August and is the lowest it has been since December 2022.
In addition, food inflation is at its lowest level since August 2022, dropping to 9.9% in September from 11.5% in August. This is the fifth consecutive deceleration in the food category.
Specifically, fresh food inflation has further slowed to 9.6% in September, down from 11.6% in August. Ambient food inflation has also decelerated to 10.4% in September, compared to 11.3% in August.
Helen Dickinson, OBE, Chief Executive of the British Retail Consortium, commented on these statistics, stating, “Food prices dropped on the previous month for the first time in over two years due to fierce competition between retailers.”
She further explained, “This decline resulted in food inflation decreasing to single digits and contributed to the fifth consecutive monthly fall in the headline rate, aided by easing cost pressures. Customers who purchased dairy, margarine, fish, and vegetables – all typically own-brand products – experienced lower prices compared to the previous month.”
Dickinson also highlighted that households benefited from price cuts for school uniforms and other back-to-school essentials. She expects Shop Price Inflation to continue falling throughout the rest of the year, while acknowledging potential risks such as high interest rates, climbing oil prices, global sugar shortages, and the supply chain disruption from the war in Ukraine.
She assured that retailers will continue their efforts to support customers and reduce prices, especially as households face financial constraints from higher energy and mortgage bills.
Adding to this, Mike Watkins, Head of Retailer and Business Insight at NIQ, shared, “With further price cuts by supermarkets in recent weeks, food inflation continues to slow, which is positive news.”
However, Watkins also acknowledged that over half of households still feel significantly impacted by the continuous increases in the cost of living. He emphasized the importance of maintaining momentum in retail sales, anticipating more price cuts and increased promotional activity across all retail channels.
In summary, the current data reveals a decline in shop price growth and food inflation, benefiting consumers with lower prices. Despite potential challenges, retailers are committed to supporting customers and implementing strategies to address cost pressures.
Source: [NIQ](https://nielseniq.com/global/en/)