Food costs help to power 16th month of retail price deflation

Food price inflation is at the lowest level since 2006 (Source: Getty Images)
Shop prices fell again during the year to August with the lowest food inflation on record, according to an industry body this morning.

Figures released by the British Retail Consortium (BRC) and Nielsen today show that shop prices overall fell by 1.6 per cent – the 16th month of deflation on record.

Although the pace of the decline in prices slowed moderately from July’s 1.9 per cent drop, food price inflation is still hovering at the lowest level since the report began in 2006, increasing by just 0.3 per cent from last year.

“As the UK economy continues to pick up, the benefits of subdued cost increases – oil and commodity prices remained relatively flat over the first half of the year – incurred by retailers will be passed on to customers,” said BRC director general Helen Dickinson.

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