Reacting to the latest inflation figures, the British Retail Consortium (BRC) said it is clear food price inflation has peaked.

Stephen Robertson, Director General of the British Retail Consortium, said: "The good news is these figures show we have passed the peak of food inflation.

"By keeping prices down and offering a rash of discounts and promotions, retailers are making the biggest contribution to containing overall inflation.

"With competition fierce and customers highly value-conscious, retailers are rushing to pass on the benefits of slowing inflation for produce at the farmgate and falls in world costs, such as oil and wheat.

"Shop prices of non-food goods are barely increasing at all.

"The bad news is extraordinary increases in gas and electricity prices are wiping out these gains, pushing overall inflation higher and hurting hard-pressed families and retailers of all sizes."