The pound was down in forex trading with the dollar to $1.600 this afternoon (January 9th) as food price inflation slows and shop price inflation steadies.
This is according to the British Retail Consortium (BRC) and Nielsen's most recent figures, which showed non-food prices were mostly flat in December after a 0.3 per cent slide the previous month.
Overall shop price inflation was unchanged at 1.5 per cent last month, while food inflation slipped to 4.1 per cent from 4.6 per cent in November.
BRC director-general Helen Dickinson explained that global commodity costs have softened in recent months, which is helping to dampen food inflation for consumers.
Senior manager of retail services at Nielsen Mike Watkins commented: "The good news is that across both food and non-food, shoppers took advantage of the many seasonal offers in December with retailers offering significant savings for the savvy shopper."
Ms Dickinson anticipates that grocery prices will stabilise in the short term and could even settle at lower levels in the second half of the year.
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