Shop prices fell for a fifth consecutive month in October as struggling retailers discounted products to tempt cautious shoppers to spend.
Data from the BRC-Nielsen Shop Price Index shows overall prices were down 0.4% year-on-year, having fallen 0.6% in September.
Amid the ongoing Brexit uncertainty, non-food prices fell by 1.5% last month compared to September’s decrease of 1.7%.
Meanwhile, food inflation increased to 1.6% from 1.1% the previous month. The rise was driven by ambient foods where prices rose 2.7% compared to 1.7% in September. Fresh food inflation was almost unchanged at 0.8%.
Helen Dickinson, Chief Executive of the British Retail Consortium, commented: “The year has seen relatively weak sales and retailers hope that Black Friday and Christmas will reverse this trend with the help of lower prices.”
She added: “Rising global food prices and the higher oil prices from earlier this year will increase costs for retailers. These factors come as the industry struggles with the burden of public policy costs, such as business rates, which is weighing heavily on the industry and keeping margins at record lows. Furthermore, while the threat of a no-deal Brexit has been pushed back, it has not gone away. To remove this threat, and the price rises that would result, the government must secure an agreement with the EU as soon as possible to give consumers and retailers the certainty they need.”
