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Food Inflation Nears Two-Year Low

Food price inflation in the UK dropped to its lowest level in nearly two years, influenced by decreasing energy and fertiliser costs, alongside intense competition among retailers to maintain low prices.


Photo by Tara Clark on Unsplash

The British Retail Consortium (BRC) reported that food prices were 5% higher than the previous year, a decline from January's 6.1%, marking the lowest rate since May 2022.


There was a notable slowdown in fresh food inflation, with prices for fruit, meat and fish experiencing reductions. However, the BRC highlighted that "significant uncertainties" still persist.


Month-on-month, food prices saw a slight decrease of 0.1% in February, with particular drops in certain fresh food categories.


Non-food inflation remained steady at 1.3% in February, with increases in the prices of items such as furniture, electronics, and health and beauty products, while clothing prices continued to fall due to ongoing promotions by retailers.


Helen Dickinson, the BRC's chief executive, remarked, "There was good news for consumers as shop price inflation fell to its lowest rate in nearly two years."


She noted that easing supply chain pressures have started to impact food prices, but warned of continuing "significant uncertainties" as geopolitical tensions escalate.


She also mentioned that non-food goods prices could be more affected by shipping costs, which have increased due to the rerouting of imports around the Cape of Good Hope.


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