Deflation continues in fresh sales

The BRC-Nielsen Shop Price Index (SPI) has reported further deflation of fresh food prices in September.

According to the report, deflation in the fresh food category accelerated to 1.5% from 0.5% in August. Significant downward pressure was exerted by the oils and fats, meat, and fish categories, the latter falling into deflationary territory in September after reporting inflation in August.

Overall shop prices reported deflation of 1.9% in September from a 1.4% decline in August while food reported annual deflation of 0.5% from a 0.2% rise in August.

BRC Nielsen Shop Price Index Food

Mike Watkins, head of retailer and business insight at Nielsen, said: Its good news for shoppers that shop prices are again lower than a year ago in supermarkets and this will help stimulate spending in the important last quarter of the year.

This will allow shoppers to plan with more confidence when juggling the household budget. Within food retailing, there is still downward pressure on prices and this is expected to continue as supermarkets battle for the wallets of the Christmas shopper, while on the high street, many non-food retailers are using strong, seasonal promotions to drive sales growth.

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