- Overall shop prices reported deflation of 1.4% in August unchanged from July.
- Food reported annual inflation of 0.2%, up marginally from the 0.1% rise in July 2015.
- On a 12-month average basis, the Shop Price Index reported deflation of 1.7%.
- Non-food deflation accelerated further to 2.4% from 2.3% in July.
LONDON, 2015-9-11 — /EPR Retail News/ — BRC Director General, Helen Dickinson, said:”Shop prices fell by 1.4 this month as a result of intense competition and falling commodity prices, which is good news for consumers who have seen 28 consecutive months of prices drops.
“Annual food prices rose for a second month but once again the rise was marginal, by just 0.2% year-on-year, and is likely to be a temporary fluctuation in a longer term downward trend driven by ongoing competition.
“August marked the 29th month of falling non-food prices. Clothing retailers discounted heavily in an attempt to shift stock with prices falling on average by 5.4 per cent. Furniture and Flooring saw a sharp deceleration in deflation to 1.2%. Great deals could be found in Books, Stationery and Home Entertainment. Prices throughout this category fell on average by 5.2 per cent.
“The latest CPI rate turned positive, after hovering around zero for the last six months. Although this inflation rate – which includes services, utilities, leisure and petrol – could fall back again, partly due to the drop in the price of oil, which has slumped by nearly a quarter in the past two months.”
“A relatively benign economic environment and a fiercely competitive market will see retailers continue to respond to their customers with prices and promotions to maintain market share.”
Mike Watkins, Head of Retailer and Business Insight, Nielsen, said: “Consumer confidence continues to increase but many shoppers are still unable or unwilling to spend freely, so retailers are continuing to offer high levels of promotions and price cuts. The underlying trend is for price deflation across both food and non-food retail and with shoppers now back from summer holidays we can expect some good deals and attractive pricing for shoppers over the next few weeks.”
British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP. 020 7854 8900. firstname.lastname@example.org.