The British Retail Consortium (BRC) is urging the Chancellor to protect retailers by keeping inflation heading in the right direction.
Shop price inflation in the UK continued its downward trend for the fifth consecutive month, reaching its lowest level since August 2022.
In October, overall inflation decelerated to 5.2%, a notable drop from 6.2% in September. This figure falls below the three-month average rate of 6.1%, indicating a consistent decline in shop price growth.
Non-food inflation also decreased, reaching 3.4% in October, down from 4.4% in September, and falling below the three-month average rate of 4.2%. This marks the lowest level since September 2022.
The food category experienced a notable slowdown in inflation, dropping to 8.8% in October from 9.9% in September. This was the sixth consecutive deceleration in food inflation, and the figure is now at its lowest since July 2022.
Fresh food inflation slowed down to 8.3% in October, further below the three-month average rate of 9.8%, while ambient food inflation decreased to 9.5%, both registering their lowest levels since July and October 2022, respectively.
The inflation figures reflect the changing economic landscape, where a combination of factors is impacting consumer prices, leading to decreased shop price inflation across various categories.
Helen Dickinson, OBE, chief executive of the BRC, said:
"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. 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 £470m per year on their business rates bill, jeopardising the progress made. Ultimately, it's consumers who would pay the price for the rising rates bill."
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