Shop prices falling at fastest rate in over 3 years

Shop prices are falling at their fastest rate in over three years.

Prices are now 0.8% lower than they were a year ago, which could mean a possible cut in interest rates from the Bank of England next week.

The Bank is expected to lower borrowing costs from 5% to 4.75% due to falling inflation.

According to the British Retail Consortium's latest report, prices have dropped consistently for the past three months.

What’s cheaper?

Non-food items saw a 2.1% drop in prices compared to last year, though food costs rose by 1.9%, down from 2.3% in the previous month.

Helen Dickinson, the BRC's chief executive, said food inflation has eased, especially for items like meat, fish, and even sweets. She says retailers have been generous with discounts, making the most of seasonal sales.

While households welcome cheaper costs, Dickinson points out that the relief of dropping prices may not last. Factors like geopolitical tensions and climate change could lower food supplies, which could ramp up prices. New government rules could have an impact, too.

How can I save money on my food shopping?

Food prices can vary quite a bit. One week you snag a great deal, and the next, your favourite items cost a fortune.

If food prices feel too high, don’t worry – saving money on groceries could be easier than you think.

Supermarket loyalty schemes are a great start. These schemes reward you for shopping at your favourite stores. You can earn points, discounts or even cashback. It’s a simple way to get more value from your regular shopping.

Stock up on essentials when prices drop and buy long-lasting items in bulk when you can.

Local markets are worth a visit too. They often have fresh produce at better prices than supermarkets. Plus, you might find interesting ingredients to spice up your dishes.

Get creative with your cooking. Look for recipes that use affordable staples like rice, beans and lentils. These are not only easy on the wallet, they’re also healthy.

Another way to cut down on food costs is by meal prepping. By making your meals in advance, you can avoid impulse buys and cut down on food waste.

Keep an eye out for seasonal produce as well. Fruit and vegetables in season are usually cheaper and tastier, too.

Apps like Too Good To Go or Olio are also fantastic options. Too Good To Go lets you buy surplus food from local restaurants and shops at a reduced price, while Olio connects neighbours and local businesses who want to share free food. Whichever app you use, you get delicious meals for very little that would otherwise go to waste.

Lastly, food banks can be a helpful resource. They provide free food to those in need. If you're struggling, reaching out to a local food bank can make a big difference.

Being smart about food shopping can really help you can handle the ups and downs of food prices while keeping your meals tasty and budget-friendly.