February shop prices fell despite food costs holding steady as non-food prices declined at their sharpest rate since May 2018, according to the BRC-Nielsen Shop Price Index.
Shop prices fell 0.6% this month, double the 0.3% decline recorded in January and below the 12- and six-month declines of 0.1% and 0.5% respectively.
This decline was spurred by non-food prices, which dropped 1.9% in February, the highest rate recorded since May 2018.
This decline steepened from 1.5% in January and was ahead of 12- and six-month declines of 1.2% and 1.6% respectively.
Food inflation held steady in February at 1.6%, ahead of the six-month average inflation of 1.4%, but below the 12-month average price increase of 1.7%.
Fresh food inflation fell marginally to 0.6% in February, below 0.7% in January, the 1.1% 12-month average price increase and the 0.7% six-month average price increase.
By contrast, ambient food costs ratcheted up 3% this month from 2.8% in January – ahead of the 2.5% 12- and six-month average increase and marking the highest inflation rate since last April.
BRC chief executive Helen Dickinson said: ”Consumers will welcome the fall in shop prices, which accelerated from the previous month, with non-food prices falling at their highest rate since May 2018.
“This decline was driven by weak consumer demand and intense competition, which led many retailers to prolong their January sales.
“In contrast, some non-perishables, such as cereals, have caused overall food prices to rise. This is likely to worsen as global food prices have been growing at a double-digit rate for the past three months.”
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