February marks the 34th consecutive month of shop price deflation
UK shop prices fell by 2% year-on-year in February following a 1.8% drop in January. The decline means that prices have fallen for a 34th consecutive month.
The figures released by the British Retail Consortium and Nielsen in their monthly shop price index show that food returned to deflationary territory, falling 0.4% in February from January’s 0.1% rise.
Meanwhile, non-food deflation remained at 3% for the third month in a row. Within the category, clothing, footwear, electricals, DIY and books all saw large reductions in prices.
The BRC said the move back into deflationary territory in the food category confirmed that last month’s marginal rise could be regarded as a blip.
BRC chief executive Helen Dickinson said: “With consumer confidence falling back and wage growth remaining subdued, retailers continue to support their customers with prices and promotions to maintain market share in the tough trading environment.”