Overview
- BRC/NIQ data show overall shop prices fell 0.3% in October from September, pulling annual shop-price inflation down to 1.0%.
- Food prices dropped 0.4% on the month, the steepest fall since December 2020, with annual food inflation easing to 3.7%.
- Fresh food inflation rose to 4.3% year on year, reflecting supply strains, while non-food prices are 0.4% lower than a year ago.
- Retailer competition, early discounts on electricals and health & beauty, and softer global sugar prices helped cool shop prices.
- The BRC urged Chancellor Rachel Reeves to avoid new retail taxes in the 26 November budget as the Bank of England tracks food prices for policy signals.