Shop prices steady on the year in Oct

Wed 04 Nov, 2009 00:07

LONDON (Reuters) - Shop prices were flat in October compared with a year ago after falling in the previous two months, the British Retail Consortium said on Wednesday. A breakdown showed annual food price inflation remained at 2.5 percent while non-food prices fell 1.3 percent on the year after an annual decline of 1.4 percent in September.

"The price of non-food goods has been deflationary for 11 months in a row, with the biggest falls in clothing, footwear and electricals," said Stephen Robertson, the BRC's director general.

"Food inflation has tumbled by three-quarters since its peak last August and is expected to remain low for the rest of the year."

(Editing by Stephen Nisbet)