However, food inflation was unchanged and stuck at 3.1% in September for the third month in a row.
Director general for the BRC Stephen Robertson said: “Falling prices for non-food goods and stable food inflation are slowing overall shop price rises. Food inflation remains at a two-year low for the third month running, despite inflationary pressures building up in the supply chain from rises in global commodities such as wheat and soyabeans.”
“These shop price figures show retailers are holding back much of the impact as they battle it out for every bit of spending available from hard-up customers. Promotions, including multi-buy offers, fuel coupons and price matching are commonplace and helping to keep grocery bills down while non-food prices have now been cheaper than a year ago for eight months in a row as prices of furniture, electricals and clothing are cut to generate sales.”
Senior Manager of Retailer Services at Nielsen Mike Watkins added: “Over the last month, we have seen some welcome stability in food retailing and sales growths have improved a little compared with the early summer. Retailers have maintained the high levels of promotional activity at 35% of sales and food inflation remains at a two-year low point at just over 3%. This will be helping shoppers to plan with more confidence when juggling their household budgets.”