Action is needed from the Chancellor to keep prices low, states BRC-NielsenIQ, whose latest Shop Price Index, covering October 2024, found that shop price deflation was at -0.8% in October, down from deflation of -0.6% in the previous month. Shop price annual growth was at its lowest rate since August 2021.
Non-food remained in deflation at -2.1% in October, unchanged from the preceding month – at its lowest rate since March 2021.
Helen Dickinson OBE, chief executive of the BRC, says: “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.
“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.”
Mike Watkins, head of retailer and business insight, NielsenIQ, adds: “Inflation in the food supply chain continues to ease and this helped slow the upward pressure of shop price inflation in October, however other cost pressures remain. Consumers remain uncertain about when and where to spend and with Christmas promotions now kicking in, competition for discretionary spend will intensify in both food and non-food retailing.”
