Coronavirus could push the price of groceries higher, according to the British Retail Consortium (BRC).
The latest BRC-Nielsen Shop Price index for March revealed a significant slowdown in food inflation drove overall UK shop prices down by 0.8%, up from 0.6% deflation in February.
Food prices in March rose by 1.1%, down from 1.6% growth in the previous month. The price of fresh food grew by 0.4% while the price of tinned products and other store-cupboard items grew by 2% as it slowed from 3% growth in February.
Meanwhile, non-food prices fell by 1.9% in March, in the highest rate of decline since May 2018.
But BRC chief executive Helen Dickinson said there are price pressures arising from the pandemic, during which supermarket food sales have soared.
She said: "Food prices, particularly of fresh produce, may be impacted by higher costs on seasonal farm labour, while non-food prices will be pushed down by lower demand.
"It is likely that the combination of future economic uncertainty and job losses, whether realised or potential, will drive people to reconsider their spending patterns and to save more.
"As a result, it is vital the Government monitors the situation carefully and is ready to continue taking bold action where necessary to support jobs and businesses."
By contrast, the shutdown of fashion clothing and other retailers seen as non-essential during the outbreak is likely to push down non-food prices further.
Mike Watkins, head of retailer and business insight at Nielsen, said: "The weak demand for many goods and services means non-food retailers continued to battle hard for consumer spending by keeping prices down wherever possible.
"And across supermarkets, the recent upwards pressure on food prices slowed a little in March, with a slowdown in the rate of inflation in both ambient and fresh foods."
