Shop prices fall at fastest rate on record
Shop prices fell for the tenth consecutive month in February and at their fastest rate for at least seven years as retailers offered heavy discounts on clothing and electrical products.
Figures released by the British Retail Consortium and Nielsen show that shop price deflation reached 1.4% in the month to mark the deepest rate of deflation since the BRC began compiling shop price records in December 2006.
The decline was led by a fall in non-food-prices, which dropped at a rate of 3%, and food price inflation slowing to 1.1%.
BRC director general Helen Dickinson said: “There are especially good deals available at the moment in clothing, electricals, books and stationery.
“Hard-pressed families watching their budgets will also be helped by the lowest level of food inflation we’ve recorded, up just 1.1% in February. In contrast to other household bills, the price of the weekly food shop is rising at a much slower pace. Many of the larger food retailers have been looking closely at their investment in promotions and price cuts, suggesting competition could intensify further.”
