According to the latest BRC-NIQ Shop Price Monitor, shop price inflation decreased to 1.0% YoY in October, against growth of 1.4% in September. This was below the 3-month average of 1.1%.
Non-food inflation decreased to -0.4% YoY, against a decline of -0.1% in September.
Helen Dickinson, chief executive of the BRC, says: “Overall shop price inflation slowed in October, driven by fierce competition amongst retailers and widespread discounting. While food inflation remains high, especially for fresh food where prices continued to rise, it eased for ambient goods. Easing global sugar prices helped to bring down prices of chocolate and confectionary, a treat for those preparing Halloween parties. Beyond food, discounts came early to electricals and health and beauty, as retailers started promotions ahead of Black Friday month."
Mike Watkins, head of retailer and business insight, NIQ, adds: “Inflation is higher than a year ago, and with pressure on household budgets and weak sentiment, retail spend continues to be subdued. However, food retailers are in a battle for market share, and many are offering targeted price cuts, and non-food retailers will wish to avoid any price increases over the next couple of months.”
