Food inflation increased to 2.3% in September, up from 2% in August ,as poor harvests in key producing regions pushed up prices for sugary products and cooking oils.

According to the latest British Retail Consortium (BRC)-NielsenIQ Shop Price Index, fresh food inflation also accelerated last month to 1.5% – from 1% in August – however ambient food inflation decelerated to 3.3%, down from 3.4%, marking its lowest rate since March 2022.

NielsenIQ head of retailer and business insight Mike Watkins said the slight increase in food inflation is “indicative of shop price inflation stabilising closer to the long-term range”.

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Overall shop price deflation was at 0.6% in September, down from deflation of 0.3% the previous month, with shop price annual growth at its lowest rate since August 2021.

Watkins added: “Retailers will still need to focus on driving demand with attractive promotions over the next few weeks.”

BRC chief executive Helen Dickinson said: “September was a good month for bargain hunters as big discounts and fierce competition pushed shop prices further into deflation.

“Shop Price inflation is now at its lowest level in over three years, with monthly prices dropping in seven of the last nine months. Food inflation edged up slightly as poor harvests in key producing regions led to higher prices for cooking oils and sugary products.”

She added: “Easing price inflation will certainly be welcomed by consumers, but ongoing geopolitical tensions, climate change, and government-imposed regulatory costs could all reverse this trend.

“Retail faces a disproportionate tax burden compared to other industries and government must take decisive action in the upcoming Budget and introduce a 20% Retail Rates Corrector – a 20% adjustment to bills for all retail properties – to level the playing field. This will allow retailers to continue to offer the best possible prices to their customers while opening shops, protecting jobs and unlocking investment.”