Market News
UK shop prices fall faster but retailers warn of risks in budget - REUTERS
LONDON, Oct 29 (Reuters) - Prices in British shops fell at the fastest pace in more than three years this month but this week's budget announcement by finance minister Rachel Reeves could help spur a return of inflation, the British Retail Consortium said on Tuesday.
Annual shop price deflation dropped to 0.8% in the 12 months to October, the BRC said, its weakest since August 2021 and a bigger fall than September's 0.6% decline.
It was the eighth time in nine months that the pace of price growth has weakened.
Food prices rose by 1.9% but non-food deflation held at 2.1%. Clothing prices edged up for the first time since January as retailers unwound some of their heavy discounting.
"Households will welcome the continued easing of price inflation," BRC chief executive Helen Dickinson said.
"But this downward trajectory is vulnerable to ongoing geopolitical tensions, the impact of climate change on food supplies, and costs from planned and trailed government regulation."
