Overall shop prices fell to 0.5% in October this year, as against the 0.2% drop in September 2013.

Food inflation in October slowed to 2.7% from 2.9% in September while non-food reported annual deflation amounted 2.4% in October from 2% in September.

British Retail Consortium director general Helen Dickinson said after inching up slightly in September, inflation has again matched the record low performance in July and August, marking the highest October deflation rate since their index began.

"Non-food prices fell further during the month, mainly driven by promotions on clothing and the ‘Super Thursday’ effect of widespread offers on the new books launched in good time for Christmas.

"Value was also a mainstay across the electricals category, as retailers competed to cater for strong pre-Christmas demand for gadgets and games while also paving the way for new releases still to come," Dickinson added.

Nielsen Retailer and Business Insight head Mike Watkins said despite the slightly more optimistic economic outlook, across the industry, consumers are still reluctant, unwilling or, in some cases, unable to increase spend.