The price of non-food items showed a year-on-year decline for the fifth consecutive month. Prices fell by 1.11 per cent since September, the first fall since July this year.
In food, prices fell by 0.69 per cent in October compared with the previous month.
BRC director-general Kevin Hawkins said: 'Overall shop prices are lower than this time last year, driven by the need to stimulate consumer spending and also discounting and promotions for Halloween and Bonfire Night.'
Sales promotions on electrical and computer-related items drove down prices in non-food. Mid-season sales from clothing and footwear retailers further contributed to the decrease.
Factors leading to the decline in food included seasonal fluctuations in vegetables, all- time-low coffee prices and falling prices of dry pasta.
'Clearly retailers are doing what they can to keep prices down and build momentum in the crucial run-up to Christmas, despite pressure on margins,' said Hawkins.
To view the BRC's Shop Price Index in full, visit our Market Data section.