Shop prices down 2.1% in November
Shop prices dropped by 2.1% in November as a result of retailers continuing investment in price, intense competition in the run up to Black Friday, and lower commodity prices. The fall follows a 1.8% decline in October
The figures released by the British Retail Consortium and Nielsen in their monthly shop price index reveal that food prices edged down 0.3% from a 0.4% fall in October. Non-food deflation decelerated to 3.3% from 2.7% in October.
November marked the 31st consecutive month of deflation and the 32nd consecutive month of non-food price drops.
BRC chief executive, Helen Dickinson, said: “Non-food prices saw a remarkable 3.3% drop, driven largely by reductions in clothing, footwear, electricals, DIY, gardening and hardware prices. Although the survey period does not cover Black Friday, it is likely that some retailers were discounting early in November in order to spread consumer spending over a longer period. Electricals for instance saw prices down 4.3% on last year.
“Food prices fell by 0.3% as the impact of past falls in oil, weaker demand in emerging markets and a strong pound, helped support a continued deflationary environment. Lower commodity prices will help food retailers to continue to offer the best possible prices.”
The BRC said the trading environment should be considered with the impact of the industry’s regulatory burden. BRC analysis shows that the combined cost of policy announcements since the General Election adds up to approximately £14 billion over the next five years.
Dickinson added: “The industry will continue to make the case to government, which has extended its review of business rates to early 2016, to properly look at rebalancing this tax away from property intensive industries in order to ensure that the introduction of the living wage does not have unintended consequences on our local communities and jobs.”
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