The rate of food price inflation has fallen for the first time in six months, prompting the British Retail Consortium to call on the Bank of England to bring in an immediate interest rate cut.

There was a slowing of inflation in both food and non-food. Overall year on year shop price inflation rose by 3.6 per cent in September compared with 3.8 per cent in August.

Year-on-year food prices inflation was 9.1 per cent in September compared with 10 per cent in August.

BRC director general Stephen Robertson said: “Given that its own forecasts show inflation is near its peak the Bank of England should cut interest rates immediately and significantly to provide a much needed boost to customers and retailers smarting from the global financial turbulence. This will build customer confidence in the run up to Christmas.”

“Both food inflation and overall shop price inflation have slowed, while some non-food items including clothing and electricals, are cheaper than they were last year.”

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