Shop price inflation has dropped to its lowest rate since August 2022, figures show.
Easing for the fifth consecutive month, prices were 5.2 per cent higher in October than a year earlier, down from September’s 6.2 per cent, according to the British Retail Consortium-Nielsen Shop Price Index.
Due to a weaker pound, imported goods had higher levels of inflation, still-high producer costs and emerging trade frictions, while prices for some domestically produced food, such as fruit were lower compared with last month.
Prices of children’s and baby clothing also fell as retailers continued to support families with the arrival of colder weather, the BRC said.
Food inflation also slowed, to 8.8 per cent from September’s 9.9 per cent – its sixth consecutive deceleration and lowest rate since July – while fresh food inflation decreased even further to 8.3 per cent, down from 9.6 per cent a month earlier.
Inflation on non-food items fell to 3.4 per cent from 4.4 per cent, its lowest rate since September 2022.
Inflation around the world - in pictures
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People queue to buy wheat flour at government-controlled prices in Islamabad. Pakistan's economy has been hit hard by a political crisis, as well as devastating floods and the global energy crisis, with the rupee plummeting and inflation at decades-high levels. AFP -
A market in Rio de Janeiro. Brazil's inflation ended 2022 with a sharp slowdown from double-digit peaks seen throughout the year. Reuters -
A market in Istanbul. Turkey's inflation at the end of 2022 stood at 64. 27 per cent, the country's Statistical Institute said, while the independent group of inflation researchers ENAG calculated it at 137. 55 per cent. EPA -
A Walmart in New Jersey. According to a poll, US Republicans and Democrats have distinct views of what’s most important for the government to address amid high inflation. More Republicans name gas and food prices, energy and immigration, while Democrats focus on health care, climate change and poverty. AP -
A used car sales lot in California. US Federal Reserve officials have indicated it’s possibly too early to declare victory over inflation. AFP -
A person walks by a sign showing interest rates at a bank in New York. EPA -
A woman walks with purchases past a store in Berlin. In December, consumer price growth across the Euro zone slowed to 9.2 per cent from 10.1 per cent a month earlier, Eurostat data showed last week. AP -
Workers sit in front of a banner reading "Stop the Inflation Monster" at the Burchardkai Container Terminal as they go on strike for higher wages at the harbour in Hamburg, Germany. Reuters -
Price tags at a market in Nice, France. Reuters -
Commuters cross Waterloo Bridge in London. The British Retail Consortium said spending in store chains rose by 6.9 per cent in annual terms in December, but this was a long way off consumer price inflation, which hit 10.7 per cent in November. Reuters -
Jobseekers in Johannesburg. South Africa’s governing party wants the central bank’s mandate broadened to shore up the economy and promote employment in addition to its existing task of tackling inflation. Reuters -
Social grant recipients stand in a queue outside a post office, as joblessness takes its toll in Meadowlands, South Africa. Reuters
“Retailers have been battling to keep prices down for their customers in the face of rising transport costs, high interest rates and other input costs," BRC chief executive Helen Dickinson said.
“To keep inflation heading in the right direction, it is vital that the government does not burden businesses with unnecessary new costs.
“Without immediate action from the Chancellor, retailers have an additional £470 million ($571 million) a year on their business rates bill, jeopardising the progress made.
"Ultimately, it’s consumers who would pay the price for the rising rates bill.”
Mike Watkins, head of retailer and business insight at NielsenIQ, said: “Inflation has helped the topline sales growth of many food retailers this year but, in reality, shoppers have been paying more and buying less.
“And the rest of the retail trade has seen less benefit due to the continued squeeze on discretionary spend.
“This time last year, pressure was growing on household incomes as inflation was accelerating in fuel, energy and food so, as inflation continues to decelerate, we now need an uptick in sentiment to help retail sales over the next eight weeks.”
