Recent industry initiatives to raise the price of fresh meat in supermarkets, along with increases in the cost of alcohol, are stoking this growth.
However, prices still remain depressed compared with the surge seen in the summer months when prices rose 0.9% year-on-year in June.
Despite peaks in February and June, the latest survey, conducted for The Grocer by ESA, shows that there has been a strong deflationary trend across the industry throughout the second half of 2005, with prices tumbling by 2.5% between June and October, and 1.2% over the past 12 months.
The price harmonisation process between Safeway and Morrisons has been a major contributing factor to this depression, along with the price pressure being exerted by all the major multiples.
The fresh produce aisles, in particular have been bearing the brunt of many price-cutting initiatives.
The Grocer Price Index