Retail inflation in the UK slowed significantly in October, with shop-price growth easing to just 1.0% year-on-year, down from 1.4% in September.
This development marks a modest relief for households as the cost of goods continues to exert pressure in the broader UK cost-of-living picture.
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Overall retail price inflation eases
According to the latest data from the British Retail Consortium (BRC) and research firm NIQ, annual shop-price inflation in October fell to 1.0% — below the three-month average of 1.1%.
Month-on-month, prices in shops declined by 0.3%, marking the first monthly drop since March. Non-food inflation recorded deflation at –0.4% year-on-year, deeper than the –0.1% seen in September.
The slowdown in shop-price inflation comes amid heightened retail competition and increased discounting, which the BRC has highlighted as the main drivers.
The food and non-food mix
In the food category, inflation remained elevated but eased: overall food inflation slowed to 3.7% in October from 4.2% in September.
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By GlobalDataHowever, fresh food prices bucked the trend by rising to 4.3% from 4.1% the previous month, reflecting ongoing production and supply-cost pressures.
Ambient food items — such as tinned and packaged goods — saw inflation drop to 2.9% from 4.2%. The non-food segment continues to show deflationary trends, contributing to the overall moderation of retail inflation.
What this means for shoppers and policy
For consumers, the slowdown in retail inflation and deflation in non-food prices offers a modest ease in shopping costs, although the elevated level of food inflation — particularly in fresh produce — means pressure remains on many household budgets.
Analysts note that retailers are under pressure from weak consumer spending and are deploying targeted price cuts.
From a policy perspective, the trend may provide some relief to the Bank of England and the Treasury, which have been closely monitoring inflation dynamics ahead of upcoming fiscal decisions.
The BRC has also warned that further tax burdens on the retail sector could hamper inflationary gains and slow a broader return to stable prices.
While UK retail inflation has lost some momentum in October, the pace remains positive and uneven across categories. The softer rise in shop-prices is encouraging, but the elevated cost of fresh food and other essentials means the cost-of-living challenge is far from over.
