Shop price inflation eased in February – but consumers are still paying 3.5 per cent more for food than a year ago, figures show.
Overall shop inflation fell slightly to 1.1 per cent from January’s 1.5 per cent, in line with the three-month average of 1.1 per cent, as fierce competition between retailers kept price rises in check and customers benefited from promotions across health, beauty and fashion, according to the British Retail Consortium (BRC) and NIQ.
Prices of products other than food were down 0.1 per cent year on year, a significant drop from January’s growth of 0.3 per cent.
Overall food inflation fell slightly to 3.5 per cent from 3.9 per cent in January, while fresh food prices remained 4.3 per cent higher than last February, a slight drop from January’s 4.4 per cent and above the three-month average of 4.2 per cent.
However falling global costs pushed ambient food inflation down to 2.3 per cent – its lowest level in four years and a significant fall from January’s 3.1 per cent.
BRC chief executive Helen Dickinson said: “Households got some welcome relief in February as shop price inflation eased.
“While the direction of travel is promising, prices are still rising, and many consumers remain under pressure.”
Mike Watkins, head of retailer and business insight at NIQ, said: “Since the start of the year, we have seen some competitive pricing across both the food and non-food channels which is helping to bring down inflation.
“Whilst the inclement weather and weak sentiment is making consumer demand rather unpredictable for retailers, at least shoppers are now seeing some of their cost-of-living pressures start to ease.”