Price inflation in stores slowed in October even though fresh food now costs 4.3% more than a year ago, the latest industry figures show.
Overall prices in stores were 1% higher than a year ago this month, down from 1.4% in September, according to the British Retail Consortium (BRC) and market researchers NIQ.
Headline food inflation fell to 3.7% from 4.2% in September, as easing global sugar prices helped reduce the cost of chocolate and candy just before Halloween.
However, fresh food prices continued to rise, reaching 4.3% higher than last October, up from 4.1% growth in September.
Good news for consumers is that non-food prices are now 0.4% lower than a year ago, down from September's 0.1% deflation, as retailers scored early deals ahead of the Black Friday sales event.
BRC chief executive Helen Dickinson said: “Overall in-store price inflation slowed in October, driven by fierce competition between retailers and widespread discounting.
“While food inflation remains high, especially for fresh foods, whose prices continued to increase, it decreased for environmental products.
“Beyond food, discounts came early to electrical and health and beauty products as retailers began running promotions ahead of the Black Friday month.
Ms Dickinson added: “The IMF recently warned that UK inflation will be the highest in the G7. With less than a month to go until the Budget, the Chancellor has an opportunity to ease some of the pressures keeping the cost of commodities high.
“Labour’s promised business rates reform must deliver a significant cut to retailers’ rates bills and ensure no shop pays more.
“Increased employers' National Insurance contributions and a new packaging tax have directly contributed to rising inflation, according to the Bank of England. Adding more taxes on retail businesses would inevitably keep inflation high for longer.”
Mike Watkins, head of retail and business insight at NIQ, said: “Inflation is higher than a year ago and, with pressure on household budgets and weak sentiment, retail spending remains subdued.
“However, food retailers are in a battle for market share and many are offering targeted price cuts, and non-food retailers will want to avoid any price increases in the coming months.”
