Food prices are falling, but many aren't feeling better off

Shoppers have been feeling the pinch in the longer term. Credit: Marius Becker/DPA

Grocery prices dropped 0.6% in the first annual food price fall since March 2006. Statistics say costs are falling - yet sentiment often seems different.

Many shoppers are not feeling much better off, despite the flood of food discounts. And here's why: food prices may be falling now, but overall they have actually grown 42% in the last six years.

Meanwhile, across the board the cost of living has grown 1.5% - at a time when wages are rising (at best) only 0.7%. So you can see why so many consumers are still feeling the pinch.