Food category biggest riser
The BRC Shop Price Index (SPI) has revealed that the overall rate of price inflation in October dropped 0.18 per cent month on month, but was 1.52 per cent higher that in October last year -the largest rise since May 2004.

This is the fourth consecutive month that prices have increased year on year. Food was the biggest riser and increased 3.38 per cent - the highest since January 2004.

The month-on-month drop was driven by non-food price growth decreasing 0.45 per cent, outweighing the 0.37 per cent rise for food.

After rising in August and September, the clothing price index fell 0.14 per cent in October. Furniture also dropped for the second consecutive month, by 1.03 per cent.

Electricals slid 0.58 per cent and, after two months of growth, DIY and Hardware fell 0.56 per cent. The price of other goods fell 0.26 per cent month on month.

ACNielsen senior manager of retailer services Mike Watkins said: 'The upward trend in food retail pricing has continued, with promotional activity relatively subdued.

'However, unseasonable autumn weather has contributed to the uncertain trading environment in the non-food sector and as retailers approach the Christmas period, non-food prices have hit their lowest point this year.'