Food inflation fell to its lowest rate since April 2022 in March, marking the tenth consecutive month of decline in the food category, the latest British Retail Consortium (BRC)-NielsenIQ data found.
The figure eased to 3.7%, down from 5% in February, while fresh food inflation slowed further to 2.6%, a down from 3.4%, and ambient food inflation decelerated to 5.2%, down from 7.2%.
Shop price annual inflation also fell last month to 1.3%, a drop from 2.5% in February and the lowest rate since December 2021.
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BRC chief executive Helen Dickinson said that the fall in shop price inflation came as “retailers continued to compete fiercely to bring prices down for their customers”.
She explained: “While Easter treats were more expensive than in previous years due to high global cocoa and sugar prices, retailers provided cracking deals on popular chocolates, which led to price falls compared to the previous month.
“Dairy prices also fell on the month as farmgate prices eased, and retailers worked hard to lower prices for many essentials.”
NielsenIQ head of retailer and business insight Mike Watkins added that “a further fall in food prices” was a “key driver” for the slowdown in inflation.
“A year ago, food inflation was 15% so this was to be expected. But it is also helped by intense competition amongst the supermarkets as they look to drive footfall, with focussed price cuts and promotional offers earlier in the month for Mother’s Day and now again in the weeks leading up to Easter.”
