In October 2025, shop-prices in Britain fell by 0.3 per cent from September, marking the first monthly decline since March, according to the British Retail Consortium.

Food prices led the drop with a 0.4 per cent decrease — the largest since December 2020.

On a year-on-year basis, overall shop-prices were still up by 1.0 per cent compared with October last year, down from a 1.4 per cent rise in September.

Annual food-price inflation also eased, dropping to 3.7 per cent from 4.2 per cent.

However, fresh-food prices continued to rise.

Industry leader Helen Dickinson pointed to fierce competition among retailers, widespread discounting and lower global sugar costs — which helped bring down chocolate and confectionery prices ahead of Halloween — as key drivers of the decline.

Some stores also launched early promotions on electrical goods and beauty products ahead of the Black Friday season.

The drop in shop-price inflation gives some relief to households facing cost-of-living pressures and may ease the burden on monetary-policy makers.

The Bank of England has been closely watching food-price trends because of their impact on inflation expectations.

Retailers warned that the improvement should not be taken for granted.

Dickinson urged the government not to impose additional taxes on retail businesses, arguing that higher business costs would force higher prices and lengthen inflation persistence.

The next Budget, due 26 November, is expected to focus on cost-of-living pressures, with the retail sector urging government support.