Shop price inflation eased for the fifth consecutive month, reaching its lowest level since August 2022 despite the continued squeeze on discretionary spending.
Annual shop prices decelerated to 5.2% in October – down from 6.2% in September – according to the BRC-NielsenIQ shop price index.
This was below the three-month average inflation rate of 6.1% and down to its lowest level since August 2022.
Non-food inflation fell to 3.4% in October, down from 4.4% in September. This was below the three-month average of 4.2% and down to its lowest level since September last year.
Food inflation decelerated to 8.8% in October, compared with 9.9% last month, falling below the three-month average of 10.1% for the sixth consecutive time.
Fresh food inflation slowed to 8.3% in October, down from 9.6% in September, while ambient food came down to 9.5% during the month, down from the 10.4% reported last month.
Helen Dickinson, chief executive of the British Retail Consortium (BRC), said: “Shop price inflation eased for the fifth consecutive month to its lowest rate since August 2022.
“Imported goods saw higher levels of inflation due to a weaker pound, still high producer costs and emerging trade frictions, while prices for some domestically produced foods, such as fruit, were lower compared to last month.
“Prices of children’s and baby clothing also fell as retailers continued to support families as the colder weather descended.
“Retailers have been battling to keep prices down for their customers in the face of rising transport costs, high interest rates and other input costs. To keep inflation heading in the right direction, it is vital that the Government does not burden businesses with unnecessary new costs.
”Without immediate action from the chancellor, retailers have an additional £470m per year on their business rates bill, jeopardising the progress made. Ultimately, it’s consumers who would pay the price for the rising rates bill.”
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