Food and drinks inflation fell to -1.5 per cent in 2014, but the company warned that prices were set to rise again next year.
“The fall in food inflation was due to consistent good weather; a significant drop in the price of crude oil and ranging economic factors, including the strengthening of the Pound against the Euro.
“However, longer term factors including global population growth, water scarcity and an unstable international political environment will mean that this trend reversal is expected to be short term,” the firm said.
Prestige also predicted variations in inflation rates according to food and drink items. For example, milk product prices are expected to stay low due to increased production and a reduction in demand. But chocolate prices will be affected by growing demand and lower production in Ebola-hit countries.
Chicken prices could suffer from the new bird flu strain recently found in the UK, but lower supply could be balanced out by a drop in demand due to extensive media coverage of the epidemic.
Beer prices could become volatile now that MPs have voted to allow pub landlords to order beer from providers outside their brand.