Shop prices ease in October as BRC urges government to use Budget to help retailers keep prices low
The British Retail Consortium has stated that shop price deflation was 0.8% in October, down from 0.6% deflation in the previous month.
This was below the three-month average of -0.6% and marked the lowest annual shop price growth rate since August 2021.
Non-food prices remained in deflation at -2.1% in October, which was consistent with the prior month and below the three-month average of -1.9%.
Meanwhile, food inflation eased to 1.9% in October, down from 2.3% in September, but was above the three-month average of 2.1%.
Helen Dickinson, BRC chief executive, said: “October saw shop prices fall marginally further into deflation for the third consecutive month.
“Food inflation eased, particularly for meat, fish and tea as well as chocolate and sweets as retailers treated customers to spooky season deals.
“In non-food, discounting meant prices fell for electricals such as mobile phones, and DIY as retailers capitalised on the recent pick-up in the housing market.”
However, fashion prices inched up for the first time since January, as retailers began rolling back the significant discounts offered throughout the past year.
Looking ahead to the Budget, Dickinson said the retail sector is already paying more than its fair share of taxes compared to other industries and has urged the Chancellor to introduce a Retail Rates Corrector, a 20% downwards adjustment, to the business rates bills of all retail properties.
She said this would help retailers to keep prices low while opening shops, protecting jobs and unlocking investment.
