- Overall shop prices reported deflation of 1.9% in September from a 1.4% decline in August.
- Food reported annual deflation of 0.5% from a 0.2% rise in August.
- On a 12-month average basis, the Shop Price Index reported deflation of 1.7%.
- Non-food deflation accelerated further to 2.9% from 2.4% in August.
LONDON, 2015-10-7 — /EPR Retail News/ — BRC Director General, Helen Dickinson, said: “September saw significant prices drops in both food and non-food goods marking the 29th consecutive month of falling shop prices.
“The temporary fluctuation of annual food price rises has come to an end with food returning to deflationary territory. Prices fell by 0.5 per cent with fresh food falling deeper than last month – by 1.5 per cent – while ambient prices rose by 0.8 per cent.
“Overall, shop prices fell by 1.9 per cent this month, largely driven by competition and great deals across a large number of categories. Non-food prices fell even faster than the previous month, reporting drops from 2.4 per cent in August to 2.9 per cent 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 per cent 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.”
Mike Watkins, Head of Retailer and Business Insight, Nielsen, said: “It`s good news for shoppers that shop prices are again lower than a year ago in supermarkets and this will help stimulate spending in the important last quarter of the year. This will allow shoppers to plan with more confidence when juggling the household budget. Within food retailing, there is still downward pressure on prices and this is expected to continue as supermarkets battle for the wallets of the Christmas shopper, whilst on the high street, many non-food retailers are using strong, seasonal promotions to drive sales growth.”
British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP. 020 7854 8900. info@brc.org.uk.