The latest BRC-Nielsen Shop Price Index has shown that the price war between supermarkets has sent food prices down for the fourth year in a row. In September, food price deflation hit its highest ever year-on-year drop, at -1.3% from 1.1% in August. This is only the second time ever that food prices have fallen by more than 1%.
Mike Watkins, Nielsen head of retailer and business insight, said: "With a new round price cuts by supermarkets in September and fresh foods also promoted to encourage visits, this has helped maintain deflation in shop prices.
"However, the warm and late summer weather was a challenge for many in the non-food channel so we may well see further price discounts as we move into October."
Helen Dickinson, CEO of the British Retail Consortium said: "We are now in the fourth year of falling shop prices, so the record-setting run of shop price deflation continues, which is great news for consumers.
"This is as a direct result of the intense competition and transformational change in the retail industry, with consumers having access to more choices and greater ability to compare prices than ever before."
