Shop prices cool ahead of Halloween
Shop price inflation eased in October as retailers ramped up discounts and competition intensified.
Figures from the British Retail Consortium and NIQ show that overall shop price inflation declined to 1% year-on-year in the month against growth of 1.4% in September.
Non-food inflation decreased to -0.4% compared to a 0.1% drop in September. Food inflation also eased falling to 3.7% from 4.2% a month earlier.
Subscribe to TRBHowever, fresh food inflation increased to 4.3% following growth of 4.1% in September.
In contrast, ambient food inflation decreased to 2.9% following last month’s growth of 4.2% as an easing global sugar prices led to a fall in prices of chocolate and confectionary.
Helen Dickinson, chief executive of the British Retail Consortium, said: ““Overall shop price inflation slowed in October, driven by fierce competition amongst retailers and widespread discounting.
“While food inflation remains high, especially for fresh food where prices continued to rise, it eased for ambient goods. Easing global sugar prices helped to bring down prices of chocolate and confectionary, a treat for those preparing Halloween parties.
“Beyond food, discounts came early to electricals and health & beauty, as retailers started promotions ahead of Black Friday month.”
Mike Watkins, head of retailer and business insight at NIQ, said: “Inflation is higher than a year ago, and with pressure on household budgets and weak sentiment, retail spend continues to be subdued.
“However, food retailers are in a battle for market share, and many are offering targeted price cuts, and non-food retailers will wish to avoid any price increases over the next couple of months.”
