The British Retail Consortium (BRC) administered Nielsen Shop Price Index (SPI) for October has reported that annual shop price inflation is three per cent down from 3.6 per cent seen in September - the second consecutive month that inflation has fallen.
The easing in the overall SPI has been helped by food inflation falling to 7.5 per cent in October compared with 9.1 per cent in September.
Annual fresh food inflation fell to 8.5 per cent in October from 10.7 per cent in September. This is the second consecutive month of falling inflation from its peak in August at 11.9 per cent.
On a month-on-month basis prices fell for a second consecutive month, fresh food down 0.3 per cent in October compared with September.
Stephen Robertson, BRC director general, said: “After a painful climb to the food inflation peak we are now accelerating down the other side. Food inflation is falling. It is falling more rapidly and we are now at the lowest rate since May.
“Without our highly competitive retail sector Christmas would be a lot less affordable for struggling households.”
Mike Watkins, senior manager at Nielsen added: “While food prices remain higher than a year ago, shop price inflation continues to slow with consumers seeing the benefit of heightened retailer competition. Price cutting and promotional activity are intensifying in the lead up to Christmas.”
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