Shop prices continue to fall
Figures released by the British Retail Consortium and Nielsen show that overall shop price deflation was 0.5% in August, the same as in July.
While food inflation rose to 2.5% in August from 2.2% in July, non-food reported annual deflation of 2.3% in the month from 2.1% in July.
BRC director general Helen Dickinson said: "This is the highest August deflation since our records began, and in line with the previous month's total which showed the biggest drop for six and a half years.
"A further fall in prices pushed non-food deflation to its lowest rate since December 2008. Discounts and promotions continue to be widespread for fashions and electricals, and health and beauty deflation is at a near five-year high thanks to an abundance of good deals on toiletries and cosmetics.
"Food inflation has edged up marginally in August after the previous month's three-year low, as a result of fresh food prices going back in line with the June rate after extensive promotions on salads and summer fruit and veg caused a dip in July."
Dickinson added that she expects shop prices to remain fairly stable if there are no major interruptions to the supply chain.
Email this article to a friend
You need to be logged in to use this feature.
Please log in here