Shop prices fell 1.9% in September
Shop prices dropped by 1.9% in September following a 1.4% decline in August.
Figures released by the British Retail Consortium and Nielsen in their monthly shop price index show that there were significant prices drops in both food and non-food goods. In addition, the drop marked the 29th consecutive month of falling prices.
Food reported annual deflation of 0.5% from a 0.2% rise in August while non-food deflation accelerated further to 2.9% from 2.4% in August.
BRC director general, Helen Dickinson, said: “The temporary fluctuation of annual food price rises has come to an end with food returning to deflationary territory. Prices fell by 0.5% with fresh food falling deeper than last month – by 1.5% – while ambient prices rose by 0.8%.
“Non-food prices fell even faster than the previous month, reporting drops from 2.4% in August to 2.9% in September. Heavy discounting could be seen in electricals, books, stationery and home entertainment. It was a particularly good month to hunt for bargains in clothing and footwear with prices falling by 6% in this category.
“While consumer confidence slowed slightly the fortuitous mix of near flat inflation and falling prices in both food and non-food will help to maintain retailers confidence for the foreseeable future.”
