Shop prices continue to fall in July
New figures have shown that shop prices have continued to fall in July, although at a slower pace than last month.
The data from the British Retail Consortium and Nielsen Shop Price Index shows that prices edged down 1.3% this month compared to a drop of 1.6% in June.
Non-food prices have declined by 2.9% compared to a fall of 3.4% in June. Meanwhile food price inflation has held steady at 1.5%.
The BRC said categories such as electricals and furniture benefited from pent-up demand and therefore offered fewer promotions. In contrast, categories where consumer spending remains weak saw their prices barely move.
Helen Dickinson BRC chief executive, added: “Falling prices at tills is good news for shoppers, and will hopefully tempt more people onto our high streets and retail destinations. This remains a difficult time for the industry as a whole and Government could help to mitigate this by supporting retailers and landlords over rent costs and taking action to boost consumer demand. Without this, we may see many more store closures and subsequent job losses.”
Mike Watkins, head of retailer and business insight at Nielsen, said: “Now that all of retail has reopened for business, keeping prices stable will be important as it’s going to be difficult for retailers to second guess the strength of consumer spend with social distancing measures continuing, and consumer confidence still low.”
