The latest Retail Price Index shows that the food sector, excluding volatile seasonal items, has entered its 13th month of uninterrupted deflation with the annual rate now at minus 0.1%. The headline rate for all items nudged up to 3.3% on the back of higher petrol prices and housing costs. During the last decade the food price index has been consistently outpaced by the all items index, rising 19% compared with 33%. A key factor in the rate of food inflation is the sterling exchange rate, given the UK's high proportion of imported and CAP controlled food commodities. {{NEWS }}