Food prices slide amid discounting wars

Price cuts in supermarkets have been helped by falls in commodity prices  
Price cuts in supermarkets have been helped by falls in commodity prices  
ALAMY

The price of food in the shops has fallen for the first time in eight years as supermarkets wage a bitter discounting war and the cost of everyday ingredients plunges on the commodity markets.

Food prices were down 0.2 per cent in November compared with the same month a year ago, according to an index compiled by the British Retail Consortium and Nielsen, the market researcher.

Non-food items, including clothes, electrical items and furniture, fell by 2.9 per cent, contributing to overall deflation of 1.9 per cent across the retail industry.

Helen Dickinson, director-general of the retail consortium, said that the falling cost of crude oil was a factor. “The price of oil, a near-five-year low, has a significant impact on the costs of producing