Credit crunch leads to fall in rate of food inflation

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.