Food prices have fallen for the first time in two years – but pressure on households is far from over

The British Retail Consortium’s measure of food price inflation has provided some long overdue good news, writes James Moore. But tight finances will afflict the UK economy for some time yet

Food prices have decreased on the previous month for first time in two years (PA) (PA Wire)

The light at the end of the UK’s long, dark inflationary tunnel is shining a little brighter courtesy of the British Retail Consortium (BRC). Pinch yourself, you’re not dreaming. The trade body has reported the first monthly fall in food prices in two years.

The highlight of its regular update on shop price inflation was the price of food fallin g by 0.1 per cent between August and September.

A word of caution. Food prices are highly volatile and the month on month figures in particular. The BRC’s more important year on year measure of inflation is still uncomfortably high. Its basket in September was 9.9 per cent more expensive thant it was in September 2022. But the trend there is at least moving in the right direction. The annual rate in August, for example, stood at 11.5 per cent.