Grocery prices drop further as superstore price war overcomes inflation issues

The cost of a basket of groceries has fallen again as the supermarket price war overcomes inflation issues caused by the weaker pound, figures show.

A basket of 35 popular items cost 16p less last month than it did in August, at £83.19, and is more than 3%, or £2.74, cheaper than it was at the same time last year, according to the mySupermarket Groceries Tracker.

Broccoli was 11% cheaper last month compared with August, crisps were 5% cheaper and eggs and the price of pasta dropped by 3%.

Compared with September last year, broccoli is now 29% cheaper, bananas cost 11% less, frozen fish fingers are down 8% and onions are down 20%.

However some products increased in price on last month, such as mushrooms (15%) and onions (26%).

MySupermarket chief executive Gilad Simhony said prices were beginning to stabilise after a period of post-Brexit uncertainty.

He said: "The price wars between the retailers appears to have overcome any inflation issues caused by the weaker sterling.

"We are also seeing both consumer confidence and prices stabilising across the board, which is a positive sign for the UK grocery market."