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The cost of groceries fell once again in September as the supermarket price war waged on

Helen Cahill
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Leading UK Supermarkets Compete For Their Share Of The Market In The Run Up To Christmas
Tesco will post its interim results tomorrow (Source: Getty)

The cost of a basket of shopping fell again in September as the supermarket price war continued to take its toll on retailers' margins.

According to research by comparison website mySupermarket, a basket of popular grocery items came to £83.19 in September, an annual drop of £2.74 and a month-on-month drop of 16p.

Read more: Sainsbury's share price drops as it reveals sales decline

The competition appeared to heat up around certain products. The price of broccoli came down by 11 per cent month-on-month and crisps were five per cent cheaper than they were in August.

Some products went up in price, such as mushrooms, which went up by 15 per cent, and onions, which increased in price by 26 per cent month-on-month.

Sainsbury's became the most high-profile casualty of the supermarket price war recently when it posted its second quarter results last week. Although transaction volumes were up, like-for-like sales fell by 1.1 per cent.

Read more: Analysts react to Sainsbury's second quarter trading update

How Tesco is dealing with ongoing price competition will become clear tomorrow when it posts its interim results.

Gilad Simhony, chief executive of mySupermarket, said:

The price war between the retailers appears to have overcome any inflation issues caused by the weaker sterling.

We are also seeing both consumer confidence and prices stabilising across the board which is a positive sign for the UK grocery market.

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