Food inflation decelerated to 8.8% in October, down from 9.9% in September, new data reveals.
This is below the three-month average rate of 10.1% and is the sixth consecutive deceleration in the food category.
The BRC-NielsenIQ Shop Price Index shows fresh food inflation slowed further in October, to 8.3%, down from 9.6% in September. This is below the three-month average rate of 9.8% and is its lowest since July 2022.
In addition, ambient food inflation decelerated to 9.5% in October, down from 10.4% in September. This is below the three-month average rate of 10.4% and is the lowest since October 2022.
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 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.”
Helen Dickinson, Chief Executive of the British Retail Consortium, added: “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.”
