By james art Overall, prices are now 0.8% cheaper than a year ago, the third straight monthly decline and down from September’s deflation of 0.6%, according to the British Retail Consortium (BRC)-NielsenIQ shop price index.
Prices of non-food items remained 2.1% cheaper overall than a year earlier, unchanged from September, as cuts saw prices of electrical appliances such as mobile phones fall, while spending on pets also fell as traders retail have benefited from the recent growth in the housing market.
However, fashion prices rose slightly for the first time since January as retailers began to pull back from heavy discounting seen over the past year.
Food inflation eased to 1.9%, down from last month’s 2.3%, especially for meat, fish and tea, as well as chocolate and sweets amid Halloween deals.
BRC chief executive Helen Dickinson said: “Households will welcome continued reductions in price inflation, but this downward trajectory is vulnerable to ongoing geopolitical tensions, the impact of climate change on food supplies and the costs of planned and tracked government regulation. Retail already pays more than its fair share of taxes compared to other industries.
“The Chancellor is using tomorrow’s Budget to introduce a retail price adjuster, a 20% downward adjustment, to the business rates bills of all outlets, which will allow retailers to continue to offer the best possible prices to customers, by while opening stores, protecting jobs and unlocking investment.”
Mike Watkins, head of retail and business analysis at NielsenIQ, said: “Inflation in the food supply chain continues to ease and this helped moderate the upward pressure on shop price inflation in October, but other pressures on costs remain.
“Consumers remain uncertain about when and where to spend, and with Christmas sales starting now, competition for discretionary spending will intensify in both food and non-food retail.”