2017.11.0100:45:00UTC+00UK Shop Price Deflation At 4-Year Low

UK shop price deflation remained at a four-year low in October, data from the British Retail Consortium showed Wednesday.

The BRC-Nielsen shop price index dropped 0.1 percent, the same annual rate as seen in September. The 0.1 percent deflation was the shallowest deflation rate in the last four years.

The annual decline in non-food product prices held steady at 1.5 percent and food prices logged the same increase as in September, of 2.2 percent.

Meanwhile, fresh food inflation rose to 2.2 percent in October from 1.8 percent in September.

"While still falling year on year, the SPI is a measure focussed on basic, entry level goods, so any upward movement in inflation indicates mounting inflationary pressures elsewhere in the consumer spending basket," Helen Dickinson OBE, chief executive, British Retail Consortium, said.

Dickinson noted that global food prices continue to head upward and the weaker pound raised prices of imported goods. On the other hand, the tightening squeeze on discretionary spending power is reducing the ability of retailers to pass on increased import costs.