This was against growth of 2.8% in August, and in line with the three-month average of 2.5%.

Fresh food inflation fell to 2.6% on the year in September, against growth of 3% in August. According to BRC, this was below the three-month average of 2.9%.

Ambient food inflation decreased to 2.2% year-on-year in September, against growth of 2.5% in August and above the three-month average of 1.9%.

Shop price inflation was above the three-month average of 1.3%, as it fell to 1.4% on the year in September, against growth of 1.5% in August.

“With higher business rates set to hit in April, alongside rising employment costs, energy bills and packaging taxes, the Budget is a fork in the road.”

Helen Dickinson, chief executive of the BRC, said: “Shop price inflation edged down this month, with food inflation falling as competition between retailers continued to deliver value for shoppers. Promotions helped bring down meat and dairy prices, though poor harvests across Europe pushed up fruit prices, and high global commodity prices kept chocolate and confectionery prices elevated.

“Retailers have absorbed wave after wave of extra costs, but there is a limit to what businesses can shoulder. With higher business rates set to hit in April, alongside rising employment costs, energy bills and packaging taxes, the Budget is a fork in the road.

“The Chancellor can help keep prices down by freezing the rates rise and removing shops from the business rates surtax, or risk pushing even more costs onto consumers.”

Mike Watkins, head of retailer and business insight at Nielsen IQ, stated: “Shoppers reset spend in September and sales growth slowed after the hot summer. So many retailers have maintained promotions and some have introduced price cuts to help drive demand, all of which is helping to keep inflation lower than a year ago. Q4 is expected to bring tighter household budgeting, so retailers will still need to absorb cost increases wherever possible.”