Faster fall in food inflation raises cost of living hopes

THE rate of food inflation fell at a record pace in the run-up to Christmas raising fresh hopes that the brutal cost of living squeeze will finally end in 2024.

- Jonathan Prynn

Grocery prices rose by an average of 6.7% year on year in December, down sharply from a 9.1% annual rate in the previous four week period, according to latest data from analysts Kantar.

It is the lowest rate since April 2022 when food prices rose by 5.9%.

For the longer 12-week period up to Christmas prices rises were at 8.1% with sugar confectionery, eggs and frozen chips seeing the fastest rises, and butter, milk and cream the biggest falls.

The easing in food inflation comes after more than a year of double-digit rises on key supermarket staples that put huge pressure on family budgets.

Grocery inflation peaked at 17.5% in March last year after the impact of Russia's full-scale invasion of Ukraine sent energy costs soaring.