A retail industry body has said Christmas shoppers look set to benefit this year as it charts falling shop prices, with food costs growing at their lowest level since at least 2006.
The British Retail Consortium's (BRC) shop price index for October, compiled by Nielsen, showed that the battle for customers between discounters and the major supermarket chains was providing benefits for consumers.
It measured falls in the price of kitchen essentials such as milk, cheese and eggs for the first time since February 2010.
The BRC said convenience food was also cheaper than it was a year ago.
Total food inflation stood at just 0.1% in October, the lowest rate since the index began in 2006, after three consecutive months at 0.3%.
Overall, shops reported deflation for the 18th-consecutive month, accelerating to an annual rate of 1.9% in October from 1.8% in September as key agricultural commodity costs fell further amid market concern about the world economy.
The report said that in addition to that, discounts on clothes and electrical goods also continued to have an impact.
BRC director general Helen Dickinson said: "With the current competitive environment, retailers are passing most of these savings on to consumers.
"This should mean great deals for shoppers as they start stocking up on seasonal fare.
"As Christmas swiftly approaches, there is plenty of evidence to suggest that budgets will go a little bit further this year."
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