// Shop prices fall 0.4% year-on-year in October
// Shop prices fell in the month ahead of the 12-month average inflation
Shop prices have slowed down in October, and were ahead of the 12-month average inflation, new research has shown.
The rate of shop prices fell 0.4 per cent year-on-year in October, falling behind the 0.6 per cent decline in prices the previous month, according to the BRC-Nielsen Shop Price Index.
Shop prices fell ahead of the 12-month average inflation of 0.2 per cent and the six-month average of 0.2 per cent price deflation.
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Meanwhile, food price inflation rose 1.6 per cent in October, ahead of a 1.1 per cent rise in September thanks to ambient food inflation rising to 2.7 per cent in the month, ahead of 1.7 per cent inflation in September.
Fresh food inflation saw a 0.8 per cent rise in October, ahead of the 0.7 per cent year-on-year inflation rate in September.
“Consumers continue to benefit from lower shop prices, with October being the fifth consecutive month of decline,” BRC chief executive Helen Dickinson said.
“Non-food prices have fallen well below the 12-month average, with greater discounting taking place as retailers seek to stimulate additional sales.
“The year has seen relatively weak sales and retailers hope that Black Friday and Christmas will reverse this trend with the help of lower prices.”
Nielsen head of retailer insight Mike Watkins said: “With an uncertain economic outlook at the start of the golden quarter, the industry has been working hard to stimulate demand and to keep price increases as low as possible.
“Seasonal ranges are now in store, and we can expect an increase in promotional activity in the run up to Christmas, which will give shoppers further savings at the checkout.”