Shop prices down in October
New figures have shown that shop prices returned to deflationary territory in October after two months of small rises.
Data from the British Retail Consortium and Nielsen in their monthly shop price index reveal that prices fell by 0.2% year-on-year.
Non-food deflation accelerated in October to 1.1% from 0.9% in September as weak consumer demand meant that retailers worked to keep their prices low.
Helen Dickinson, BRC chief executive, said: “As we approach the Christmas period, retailers are facing stiff competition; driving down the prices of many goods including clothing and electricals. This comes at a particularly difficult time, with lower consumer demand, a weak pound and rising public policy costs all putting pressure on retail margins.”
Meanwhile, food inflation slowed to 1.3% in October from 1.9% in the previous month as a cooling of global food prices, particularly in the categories of meat and dairy, started feeding through to shop prices.
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