Food sales fall in October as other retail sectors increase slightly

The fall contrasted with a small rise of 0.6% in overall retail sales, with increases in all the main sectors except food.

The ONS said food store sales were now 4.1% below their pre-Covid levels in February 2020.

The overall October rise this year comes after a 1.5% total fall in September, which was affected by the additional bank holiday for the state funeral of the Queen.

Despite the modest recovery, many commentators said they did not expect the increase to continue as inflation and the cost-of-living crisis continues to depress the overall economic picture.

Farah Thalji, a director at global consultancy Simon-Kucher & Partners, said: “Today’s surprise jump in retail sales for October will be welcomed by an industry which has been under increasing pressure in recent months.

“However, month-on-month retail sales excluding fuel grew less than expected, which highlights continued consumer misgivings over rising inflation and higher food and energy prices, exacerbated by the release yesterday of the chancellor’s autumn statement, which will mean increased taxes for millions.

“With the festive season fast approaching, many people have already cut back on volume of in-store food purchases and will continue to revise food and clothing purchases as well as reining in their gift lists.”

Thalji added that the economy is facing its “most challenging period since the economic downturn of 2008-2009”.

UK inflation reached 11.1% in October, the highest rate for more than 40 years, and the government has said it thinks the economy is already in recession.