Shop prices fall at fastest pace in seven years in December
Figures released by the British Retail Consortium have shown that shop prices fell for the eighth consecutive month in December and at their fastest rate since 2006 as retailers discounted their prices to attract Christmas shoppers.
According to the latest BRC-Nielsen Shop Price Index, prices fell 0.8% compared to the same month a year ago to mark the deepest deflation rate since the index began in December 2006.
Food inflation slowed to 1.7% from 2.3% in November while non-food reported annual deflation of 2.3% in December from 2% in the previous month.
BRC director general Helen Dickinson said:”Non-food prices fell further in December, reflecting the widespread promotional activity as retailers competed for all-important Christmas custom. Many categories remained deflationary, while prices fell for books, entertainment and home improvement products to attract shoppers preparing for the festive break. It’s also worth noting that ‘Cyber Monday’ fell in the period covered by the index, so discounting was particularly commonplace, with many retailers offering to match or beat offers found elsewhere.
Never Miss a Retail Update!“With few signs of volatility in the supply chain at present, I would expect retailers to continue helping to keep the cost of living down, with prices settling at relatively low levels in the coming months.”
Mike Watkins, head of retailer and business insight at Nielsen, added: “With food inflation slowing in December, this will have brought a festive cheer to shoppers filling their trolleys with food and drink at supermarkets, especially as Christmas fell later this year. With the continuation of price cuts and promotions across all of retailing and with many shoppers holding back on shopping to the last week, there will have been bargains and some great savings for the savvy Christmas shopper.”
