Proactive Investors - Shop prices have continued to fall for the third month in a row, adding to pressure on the Bank of England to cut interest rates at next week's meeting.
A report released overnight from the British Retail Consortium showed retail prices falling at their fastest pace in more than three years, with a decline of 0.8% compared to October last year. This followed a fall of 0.6% in September.
Non-food prices are driving the deflation, with a 2.1% for two successive months, the lowest rate since March 2021.
Food prices continue to rise though, though inflation slowed to 1.9% in October from 2.3% in September. This was the lowest annual rate in food inflation since November 2021.
Fresh food prices are rising less than those for room-temperature products, at 1.0% compared to 3.1% (versus 1.5% and 3.3% in September respectively).
BRC chief executive Helen Dickinson said: "Food inflation eased, particularly for meat, fish and tea as well as chocolate and sweets as retailers treated customers to spooky season deals.
"In non-food, discounting meant prices fell for electricals such as mobile phones, and DIY as retailers capitalised on the recent pick-up in the housing market.
"With fashion sales finally turning a corner this autumn, prices edged up slightly for the first time since January as retailers started to unwind the heavy discounting seen over the past year."
Dickson said the downward trajectory in prices is "vulnerable to ongoing geopolitical tensions, the impact of climate change on food supplies, and costs from planned and trailed government regulation" and so she called for a 20% downwards adjustment to the business rates bills of all retail properties in the Budget tomorrow.