Data released by market researcher Kantar showed that food price growth in the UK slowed sharply in February, as supermarket promotions picked up after a post-Christmas slowdown.
According to the report, in the four weeks to February 18, food prices rose by 5.3% per annum after an increase of 6.8% in the previous four-week period. The latest increase, which was the weakest since March 2022, should be somewhat encouraging for the Bank of England, which closely monitors food prices.
Kantar said that in February UK consumers’ spending on offers increased by 4% per annum or by 586 million pounds.
Separate data from the British Retail Consortium released yesterday showed that overall store prices rose at the slowest pace in almost two years in February, reinforcing signs of easing inflationary pressures.
According to official data, in January consumer prices rose by 4.0% per year after a similar increase in December. Economists had expected inflation to accelerate to 4.2%. Economists will be watching keenly for signs on what impact the figures could have on the Bank of England's base interest rate, which is causing pain for borrowers and homeowners struggling with higher mortgage rates. The next Bank of England decision is on March 21. The day before this decision, another data on the consumer price index will be published.