Food prices fall for first time in eight years
Food prices fell for the first time in eight years in November as supermarkets continued to cut prices in a bid to attract more customers.
Figures released by the British Retail Consortium and Neilsen in their monthly shop price index show that food reported annual deflation for the first time since the series began in December 2006, falling by 0.2% in November.
Both the fresh and ambient food categories reported annual deflation, falling by 0.3% and 0.2% respectively.
BRC director general Helen Dickinson said: “We’re seeing the big supermarkets investing in price cuts worth millions of pounds during a hugely competitive period in the food market. With food prices down, wages up, a highly competitive market keeping inflation low; and Christmas around the corner, there are plenty of good reasons to assume a strong trading period lies just head of us.”
Never Miss a Retail Update!Meanwhile, non-food deflation slowed marginally to 2.9% in November from 3.1% in October.
Overall shop prices fell by 1.9% in November to mark the nineteenth consecutive month of deflation.
Mike Watkins, Neilsen’s head of retailer and business insight, said: “It’s been another slow start to Christmas trading and momentum on the high street has been reliant on retailers promoting and running `discount days` to drive shoppers into store. With little inflationary pressure we anticipate the good festive deals to continue and the savvy Christmas shopper can expect some very competitive prices across food retailers, in particular for fresh and seasonal foods, where some prices are lower than last year.”
