Shop prices down 1.8% in January
UK shop prices fell by 1.8% year-on-year in January following a 2% drop in December. The decline means that prices have fallen for the 33rd month in a row.
The figures released by the British Retail Consortium and Nielsen in their monthly shop price index show that non-food deflation remained at 3% for the second consecutive month driven mainly by reductions in clothing, footwear, books, DIY, stationery and home entertainment.
Meanwhile, food prices edged up 0.1% compared to the 0.3% drop in December to mark the first rise since August 2015.
BRC chief executive Helen Dickinson said the overall decline in shop prices was a result of continuing intense competition and retailers’ ongoing investment in price.
She added: “Higher levels of consumer confidence are currently translating into other parts of consumer spending – in leisure, entertainment and eating out - rather than into shopping which is providing the backdrop to a tough trading environment for retailers but great news for shoppers.”
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