The drop is evident in both fresh and ambient food. Fresh food inflation fell to 8.5 per cent in October, down from 10.7 per cent, while ambient food slowed in October to 5.9 per cent from 6.7 per cent in September.
BRC director general Stephen Robertson said: “After a painful climb to the food inflation peak we’re now accelerating down the other side. Food inflation is falling. It’s falling more rapidly and we’re now at the lowest rate since May.”
Non-food inflation fell slightly, down to 0.7 per cent in October, from 0.8 per cent the previous month.
Robertson said: “Non-food price rises are below one per cent and slowing, with electricals and clothing actually cheaper than last year.
“With oil and wheat thirty per cent down on a year ago, and the battle on for every pound customers have to spend, retailers are rushing to pass the benefits on. Would it be too much to ask that oil and utility companies do the same?
"Without our highly competitive retail sector Christmas would be a lot less affordable for struggling households.”
Overall, the BRC-Nielsen Shop Price Index said SPI is down to 3 per cent in October from 3.6 per cent in September.
Nielsen senior manager, retailer services, Mike Watkins, said: “Whilst food prices remain higher than a year ago, shop price inflation continues to slow with consumers seeing the benefit of heightened retailer competition. Price cutting and promotional activity are intensifying in the lead up to Christmas."
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