Grocery prices were flat in October as Brexit-related price inflation was beaten by the supermarket price war

Helen Cahill
Follow Helen
Gruene Woche Agriculture Trade Fair
The supermarket price war is keeping food cheap for now (Source: Getty)

Grocery prices were flat in October despite inflationary pressures from the fall in sterling, according to new figures.

Analysis by website MySupermarket found that a basket of 35 key groceries cost £83.40, compared to £83.19 the month before.

Read more: So Moneysupermarket? Comparison site is on track for a "record year"

Annually, the price of the full basket fell by two per cent.

The price of mushrooms went up 12 per cent - the biggest increase of any item in the analysts' basket - following on from an increase of 15 per cent between August and September.

Prices have fallen on some other fresh items such as peppers and carrots, which were three per cent and four per cent cheaper respectively.

MySupermarket's chief executive Gilad Simhony said: "Despite rising inflation and the falling pound, shoppers are still enjoying cheaper goods when compared to 2015.

"An incredibly competitive arena between the major supermarkets is keeping the cost of goods low even in uncertain times."

Read more: A tale of two sectors: Fashion retailers fall as supermarkets jump

The British Retail Consortium and Nielsen today reported that overall shop prices fell by 1.7 per cent month-on-month in October, also indicating that shoppers have been so far shielded from inflationary pressures.

But the BRC said price inflation will start to come through in early 2017, as the grocery supermarket war runs out of ammunition.

Related articles