Prices on the High Street fell yet again last month, largely because of a new round of competition between the big food retailers.

According to the British Retail Consortium's monthly Shop Price Index, they reduced by 0.5% in October, reversing September's brief move into rising prices.

While some seasonal products, such as apples, were more expensive, reductions on groceries and fish as well as non-food goods meant prices fell overall.

"Shoppers are still paying less than they were two years ago," Bill Moyes, the BRC's director general, said in a statement.

The latest supermarket price war began in October when Tesco cut its prices yet again.

Last month also saw the competition commission rule that the big supermarket chains were not acting uncompetitively after a year-long investigation.

Retailers are keen for interest rates to stay put. They will also be hoping that these lower prices will tempt customers to shop early for Christmas.

The Bank of England Monetary Policy committee last month voted to keep rates on hold.

Although shop prices are falling, overall retail prices rose by 3.3% in October, and there are fears that higher oil prices might lead to further inflationary pressures.