UK shop price deflation accelerates in October

28th Oct 2024 10:35

(Sharecast News) - The British Retail Consortium has urged the chancellor to take action to keep prices low as data revealed that shop price deflation accelerated in October.

Prices at UK tills were 0.8% lower than 12 months ago, compared with a 0.6% year-on-year fall in September, according to the BRC/NielsenIQ Shop Price Index for October.

This was the third straight month of annual deflation and lowest rate of change since August 2021.

Non-food prices fell by 2.1%, unchanged from the preceding month, while food prices grew by 1.9%, down from 2.3% previously, with fresh food inflation in particular slowing to 1.0% from 1.5%.

The BRC said that food inflation eased as retailers stepped up their seasonal deals, while non-food items like electrical and DIY products were priced lower as retailers capitalised on the recent pick-up in the housing market.

"Households will welcome the continued easing of price inflation, but this downward trajectory is vulnerable to ongoing geopolitical tensions, the impact of climate change on food supplies, and costs from planned and trailed government regulation," said BRC chief executive Helen Dickinson.

"Retail is already paying more than its fair share of taxes compared to other industries. The chancellor using tomorrow's Budget to introduce a Retail Rates Corrector, a 20% downwards adjustment, to the business rates bills of all retail properties will allow retailers to continue to offer the best possible prices to customers while also opening shops, protecting jobs and unlocking investment."