Shop inflation has fallen by 1% year-over-year, below the 1.4% increase in September.
According to data from the British Retail Consortium (BRC), UK food inflation also decreased by 3.7% year-on-year in October, compared with the 4.2% growth last month,
Helen Dickinson, chief executive of the BRC, said: “Overall shop price inflation slowed in October, driven by fierce competition amongst retailers and widespread discounting.
“While food inflation remains high, especially for fresh food where prices continued to rise, it eased for ambient goods. Easing global sugar prices helped to bring down prices of chocolate and confectionary, a treat for those preparing Halloween parties.”
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Fresh food inflation rose by 4.3% in October, compared to a 4.1% increase in the month prior. This figure is above the three-month average of 4.2%.
Ambient food inflation reduced by 2.9%, lower than the 4.2% increase reported in September.
Non-food inflation also decreased to -0.4% year-over-year in October, compared to a -0.1% decline in the month prior.
Dickinson added: “Labour’s promised business rates reform must deliver a meaningful cut to retailers’ rates bills and ensure that no store pays more.
“Rising employer National Insurance Contributions and a new packaging tax have directly contributed towards rising inflation, according to the Bank of England. Adding further taxes on retail businesses would inevitably keep inflation higher for longer.”
Mike Watkins, head of retailer and business insight, NIQ, said: “Inflation is higher than a year ago, and with pressure on household budgets and weak sentiment, retail spend continues to be subdued.
“However, food retailers are in a battle for market share, and many are offering targeted price cuts, and non-food retailers will wish to avoid any price increases over the next couple of months.”
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