Shop price inflation dropped for the second consecutive month in February, hitting its lowest point of annual growth since March 2022.
The latest BRC-NielsenIQ Shop Price Index found annual shop prices were down to 2.5% for the month, compared to 2.9% in January, putting them under the three-month average of 3.3%.
Food inflation slipped 5.5% in February, compared to 6.1% in January, marking the tenth consecutive monthly drop in the category.
Fresh food inflation slumped to 3.4%, hitting its lowest point since February 2022, while ambient food prices declined to 7.2%, their lowest since July 2022.
However, non-food inflation remained stagnant at 1.3%, its lowest point since January 2022, according to the trade association.
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BRC CEO Helen Dickinson said: “There was good news for consumers as shop price inflation fell to its lowest rate in nearly two years.
“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.”
The trade association exec continued: “Domestically, retailers face a major rise to their business rates bills in April, determined by last September’s sky-high inflation rate.
“April’s rates rise should be based on April’s inflation, and the Chancellor should use the spring Budget to make this correction, supporting business investment and helping to drive down prices for consumers.”
In January, shop price inflation dropped to its lowest rate in almost two years, as food inflation dropped for the ninth consecutive month.
Shop prices eased to 2.9% in January, down from 4.3% in December, and below the three-month average of 3.9%.
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