Food price inflation nears two-year low

Food price inflation fell in February to its lowest rate in nearly two years, driven by easing energy and fertiliser costs and fierce competition among retailers to keep prices down.

Food prices in February were 5% higher than a year ago, but that marked a drop from January's 6.1%, and the lowest level since May 2022, the British Retail Consortium (BRC) said.

Fresh food inflation slowed with price drops for meat, fish and fruit.

However, the BRC warned that "significant uncertainties" remain.

Food prices dipped 0.1% month-on-month in February, the BRC said, noting drops in certain fresh food items.

Non-food inflation remained unchanged at 1.3% in February, with the price of goods such as furniture, electronics and health and beauty products rising but clothing continuing to fall with retailers keeping promotions running.

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

"Easing supply chain pressures have begun to feed through to food prices, but significant uncertainties remain as geopolitical tensions rise.

"Prices of non-food goods will be more susceptible to shipping costs, which have risen due to the re-routing of imports around the Cape of Good Hope."