January sees record shop price deflation
Figures released by the British Retail Consortium have shown that shop prices fell for the ninth consecutive month in January and at their fastest rate for seven years.
The latest BRC-Nielsen Shop Price Index has revealed that overall shop price deflation accelerated to 1% from 0.8% in December. This was the deepest level of deflation since the Index began in December 2006.
Food inflation slowed to 1.5% from 1.7% in December while non-food reported annual deflation of 2.7% in January from December’s 2.3%.
The BRC said that discounting during the traditional January sales had been deeper and more widespread than last year and that the trend was continuing.
Never Miss a Retail Update!BRC director general Helen Dickinson said: “Shop prices are falling at their fastest rate for seven years, a new record for our data. Our figures show that there have been particularly good deals to be had in clothing, furniture and electrical items this month as retailers prepare for their new collections.
“Hard pressed families will also have benefitted from the lowest levels of food inflation in almost four years. Our food retailer members have managed to keep prices low again and with relatively stable commodity prices at the moment as well, and forecasts for commodities quite upbeat, we may continue to benefit from this for some time yet.”
Mike Watkins, head of retailer and business insight at Nielsen, added: “The start of 2014 has seen a continuation of both slow retail growth particularly in food, and a continuation of slowing inflation. With the first few weeks of January a time when many households take stock of personal finances, the fall in shop price inflation will be a welcome boost for consumers.”
