UK Shop Prices Decline for Third Month Amid Inflation Concerns

Overview

• Annual shop price deflation reached 0.8% in October, marking the steepest decline since August 2021.
• Food inflation decreased to 1.9% annually, while non-food prices remained 2.1% lower than the previous year.
• The British Retail Consortium warns that the current deflationary trend is vulnerable to external pressures such as geopolitical tensions and climate change impacts.
• Retailers are urging the UK government to reform business rates in the upcoming budget to help maintain lower consumer prices.
• The Bank of England is expected to cut interest rates in November, as inflationary pressures continue to stabilize.