Shop prices continue to fall
Shop prices fell for a fourth consecutive month in August as shoppers continued to benefit from widespread promotions and discounts from retailers.
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.
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