Food inflation eased in January, despite sugary products, chocolates and alcohol having experienced a spike in prices.

According to the British Retail Consortium (BRC)-NielsenIQ shop price index for January 2025, food inflation decreased to 1.6%, down from 1.8% in December 2024.

Meanwhile fresh food inflation slowed in January at 0.9%, down from 1.2% the month prior and ambient food inflation edged down to 2.5% – its lowest since February 2022.

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Overall shop price deflation was 0.7% in January, above deflation of 1% in the previous month and slightly above the three-month average rate of -0.8%.

BRC chief executive Helen Dickinson said: “This month’s figures showed early signs of what is to come, with month on month food prices rising at their fastest pace since April last year. Ambient food saw a 1% jump as prices spiked for sugary products, chocolates and alcohol.”

NielsenIQ head of retailer and business insight Mike Watkins added: “Shoppers continue to be unsure about spending and many are seeing a continued squeeze on their household incomes.

“So we expect food retailers to still offer price cuts over the next few weeks, with shoppers managing their budgets by shopping smart and shopping around for wherever the savings are the most attractive.”