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Credit crunch leads to fall in rate of food inflation

Paul Spackman
Friday 10 October 2008 00:00
supermarket

Falling commodity prices and economic uncertainty meant the rate of food price inflation fell during September, the latest British Retail Consortium-Nielsen Shop Price Index has shown.

Annual food price inflation decreased to 9.1%, from an August peak of 10%, while month-on-month inflation was just 0.3%. Fresh food inflation decreased considerably from 11.9% in August to 10.7% in September – the first decrease in the rate of inflation since March 2008.

Ambient food inflation also fell, from 7.3% to 6.7% last month.

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