Shop prices down on a year ago
The BRC-Nielsen Shop Price Index (SPI) remained deflationary for the second consecutive month in September.
Overall shop prices fell 0.1% in September compared with the same month last year. Food inflation increased to 2.5% in September, from 2.3% in August.Month-on-Month: On a month-on-month basis overall shop prices were broadly flat in September.
The BRC's Director General, Stephen Robertson, said:"More good news for customers. Overall shop prices are down on a year ago for the second month in a row. Prices for non-food goods have been deflationary for ten consecutive months now with clothing, electricals and furniture showing the biggest falls as retailers discount to generate sales.
"Fresh food inflation fell to its lowest level since the index began in 2005 - a dramatic contrast with a year ago. Shop prices for some manufactured foods increased more quickly than last month as big increases in the world prices of sugar and cocoa pushed up costs but this wasn't enough to affect overall shop price inflation.
"Generally, lower prices are likely to go on helping households in the run up to Christmas."
Mike Watkins, Senior Manager, Retailer Services, Nielsen comments: "Non food prices remain lower than a year ago but many shoppers are still reluctant to spend on higher ticket items despite VAT reductions. The marginal increase in the inflation at food stores is indicative of food price inflation returning to the more normal, long-term range of between two per cent and three per cent."
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