UK Food Price Inflation Drops Below 10% for First Time in Over a Year, Result of Supermarket Discounting Wars

Supermarket discounts fuel grocery price inflation drop to 9.7% in October; still, consumers feel the pinch as the cost of only a few items like butter, dried pasta and milk sees a decrease.

• The rate of UK food price inflation dropped below 10% for the first time in over a year, standing at 9.7% in October. This reduction is attributed to high competition among supermarkets, which has led to an increase in discounts and promotions.
• Despite the drop in prices, consumers are still struggling with the cost of living as only a few items like butter, dried pasta, and milk are cheaper than a year ago.
• Customers have been changing traditional spending habits and shopping more at discount retailers to save money. Lidl was reported to have the fastest growth among retailers in October with 14.7% sales growth over the last quarter.
• Research group Kantar argues that the drop in inflation is a significant milestone for British retailers and the public, although customers are still feeling the financial pressure.
• Lower-income households are particularly affected. Consumer advocacy group Which? calls on supermarkets to help these households by offering budget range essentials at lower prices in the run-up to Christmas.

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