Shop price inflation slowed in August to 2.7% compared to 2.8% in July.

The rate of food price inflation was 5% year-on-year, compared to 5.2% in July, the BRC-Nielsen Shop Prince Index showed. Non-food prices were up 1.4% compared to 1.3% the previous month.

BRC director-general Stephen Robertson said: “”For the second month in a row a fall in overall shop price inflation can be put down to food inflation slowing. 

“Global commodities, such as wheat, have dropped from the peaks they reached earlier in the year, though costs remain high. Good harvests of fresh fruit and vegetables have also helped keep food prices down. “

He said that the intensity of competition between retailers means consumers are not having to bear the full burden of food price inflation.