Food prices fall but risks remain: BRC
Shop price annual inflation eased to 2.5% in February, down from 2.9% in January – the lowest since March 2022.
Food inflation decelerated to 5.0% in February, down from 6.1% in January and marks the 10th deceleration in the food category.
Additionally, fresh food inflation slowed further in February, to 3.4%, down from 4.9% in January, its lowest since February 2022. Meanwhile ambient food inflation decelerated to 7.2% in February, down from 7.7% in January, and the lowest since July 2022.
Chief Executive of the British Retail Consortium, Helen Dickinson said there was good news for consumers.
“Food prices fell month-on-month with drops in fresh food including meat, fish and fruit. This was driven by easing input costs for energy and fertiliser while retailers competed fiercely to keep prices down,” said Ms Dickinson.
PRICE CUTS
“Easing supply chain pressures have begun to feed through to food prices, but significant uncertainties remain as geopolitical tensions rise. Prices of non-food goods will be more susceptible to shipping costs, which have risen due to the re-routing of imports around the Cape of Good Hope.
“Domestically, retailers face a major rise to their business rates bills in April, determined by last September’s sky-high inflation rate. April’s rates rise should be based on April’s inflation, and the Chancellor should use the spring Budget to make this correction, supporting business investment and helping to drive down prices for consumers.”
Head of Retailer and Business Insight at NielsenIQ, Mike Watkins added: “shop price inflation has slowed and the underlying trend in prices will be downwards over the next few months.
“Since the start of the year, food retailers in particular have reduced prices as well as passing on price cuts coming through supply chains. For high street retailers faced with weaker demand, keeping prices stable over the next few months will be key to encourage customers to spend.”
