Shop price inflation slows despite rising costs of fresh food

The latest industry data shows shop price inflation slowed in October, while fresh food prices are now 4.3% higher than a year ago.

Overall shop prices were 1% higher this month than a year earlier, down from 1.4% in September, according to the British Retail Consortium (BRC) and market researcher NIQ.

Overall food inflation fell to 3.7% from 4.2% in September as softening global sugar prices helped push down the cost of chocolate and confectionery just ahead of Halloween.

However, fresh food prices continued to rise, rising 4.3% compared to last October compared with a 4.1% increase in September.

In some good news for consumers, prices for goods other than food are now 0.4% lower than a year ago, down from September’s deflation of 0.1%, as retailers snapped up early bargains ahead of the Black Friday sales event.

BRC chief executive Helen Dickinson Said: “Overall shop price inflation slowed in October due to fierce competition among retailers and widespread discounting.

“While food inflation remains high, especially for fresh food where prices have been rising steadily, it has moderated for broader commodities.

“Apart from food, discounts in electricals and health and beauty arrived early, as retailers started promotions ahead of Black Friday month before.

Ms Dickinson said: “The IMF recently warned that UK inflation will be the highest in the G7. Also Budget Less than a month away, chancellor There is an opportunity to get relief from some of the pressures that are keeping the costs of essential commodities high.

“The business rates reform promised by Labor should deliver meaningful cuts to retailers’ rates bills, and ensure no store pays more.

According to the Bank of England, “Rising employer National Insurance contributions and a new packaging tax have directly contributed to rising inflation. Adding additional taxes on retail businesses will inevitably keep inflation higher for longer periods of time.”

Mike Watkins, head of retailer and business insight at NIQ, said: “inflation Higher than a year ago, and due to pressure on household budgets and weak sentiment, retail spending continues to decline.

“However, food retailers are in a battle for market share, and many are offering targeted price cuts, and non-food retailers will want to avoid any price increases over the next few months.”