Shop price deflation highest for six-and-a-half years, says BRC
Overall shop prices fell by 0.5% in July to mark the biggest drop in six-and-a-half years according to figures released by the British Retail Consortium and Nielsen.
The figures show that year-on-year food inflation declined to 2.2% in July and is now at its lowest rate since summer 2010. Non-food inflation fell to 2.1% as retailers continued to discount clothing and footwear.
This is the third consecutive month that the overall cost of goods on the high street has fallen which BRC said was “great news for hard-pressed families”.
BRC director general Helen Dickinson said: "Shop prices have now fallen for three consecutive months compared with last year and July's rate showed the biggest drop for six and a half years. It shows just how hard retailers are working to serve their customers and underlines how deep the promotions and discounts from retailers are at the moment.
"In particular, there has been significant discounting of clothing and footwear across women's, men's and children's categories. Anyone who's been waiting to update their wardrobe would be well advised to look at some of the deep discounts that are currently available.”
Mike Watkins, head of retailer and business insight at Nielsen, added: "Whilst the 2013 heatwave is bringing strong sales uplifts for food retailers it`s holding back some non-food sales growth, so the welcome slowdown in shop price inflation in July should benefit most retailers and help to kick start consumer demand as we enter the peak holiday period."
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