Food inflation has fallen to its lowest level for five months as the price war between Britain's big five supermarkets intensifies.

The British Retail Consortium said yesterday that there were signs that the rate of growth had peaked after a painful year for shoppers.

Food prices rose by 7.5 per cent in October in contrast to the 9.1 per cent growth recorded in September.

Non-food prices were 0.7 per cent higher, compared with 0.8 per cent the month before.

Mr Robertson said: “After a painful climb to the food inflation peak we are now accelerating down the other side. Food inflation is falling. It is falling more rapidly and we are now at the lowest rate since May.”

He added: “With oil and wheat 30 per cent down on a year ago and the battle for every pound customers have to spend, retailers are rushing to pass the benefits on.

“Would it be too much to ask that oil and utility companies do the same?”

Associated British Foods, one of Britain's biggest food producers, said on Tuesday that inflationary pressure from higher priced commodities such as wheat and corn oil had all but disappeared in recent weeks.

The Grocer, the food industry magazine, last week said that fruit and vegetable prices were beginning to fall with bananas more than 6 per cent cheaper than a year ago, and broccoli falling by 22 per cent.

Growers claim that the lower prices are due to pressure from supermarkets such as Aldi, Tesco and Asda, which have targeted their biggest price cuts on key staples such as milk and potatoes. Marks & Spencer recently cut the price of 530 food products - about 10 per cent of its range.

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