Competition between supermarkets has led to the first monthly drop in food prices for more than two years, an industry body has said. The British Retail Consortium (BRC) said prices in September were down 0.1% from the previous month. Prices of dairy goods, margarine, fish and vegetables – which are often own-brand lines – all saw falls, it said. Grocery inflation – the annual rate at which food prices are rising – remains high but is starting to ease. The BRC said food prices rose by 9.9% in the year to September, down from a rate of 11.5% in August. Overall shop price inflation – which includes non-food items – fell to 6.2% last month, the lowest rate for a year.
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