Food inflation across the UK has plunged to its lowest level in a year, the BRC-NielsenIQ Shop Price Index reports.

Figures fell to 11.5% in August from 13.4% the month before.

The Office for National Statistics also found the annual rise in average total pay was only up by 8.2% from April to June, meaning food prices continue to rise quicker than wages.

The British Retail Consortium (BRC) found price rises across shops had dropped to their lowest point since October 2022, but continue to significantly rise.

Prices were up from 8.4% in July to 6.9% in the year to August.

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The main factor behind the fall in retail inflation was fresh food prices increasing at a slower pace, according to the trade association.

BRC chief executive Helen Dickinson said this was “better news for consumers as shop price inflation in August eased to its lowest level since October 2022”.

However, she added: “While inflation is on course to continue to fall thanks to retailers’ efforts, there are supply chain risks for retailers to navigate”.

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