BRC calls on government to use budget to keep prices low as inflation hits lowest rates since 2021

Shop price deflation was at 0.8% in October, up from 0.6% of deflation in the previous month. This was below the three-month average rate of -0.6% – the lowest rate in over three years, according to the BRC-NielsenIQ shop price index.

Non-food remained in deflation -2.1% in October, unchanged from the previous month and below the three-month average rate of -1.9% – with inflation at its lowest rate seen since March 2021.

Food inflation slowed to 1.9% in the period, down from 2.3% in September. Fresh food inflation decelerated to 1% in the month, down from 1.5% in September.

Ambient food inflation decelerated to 3.1% in October, down from 3.3% in September.

BRC chief executive Helen Dickinson said customers would “welcome the continued easing of price inflation” and urged the chancellor to use tomorrow’s budget to “introduce a Retail Rates Corrector” allowing retailers to “continue to offer the best possible prices to customers”.

“October saw shop prices fall marginally further into deflation for the third consecutive month. Food inflation eased, particularly for meat, fish and tea as well as chocolate and sweets as retailers treated customers to spooky season deals. In non-food, discounting meant prices fell for electricals such as mobile phones, and DIY as retailers capitalised on the recent pick-up in the housing market.

“With fashion sales finally turning a corner this Autumn, prices edged up slightly for the first time since January as retailers started to unwind the heavy discounting seen over the past year,” said Dickinson.

“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. 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.”