UK shop prices fall for 30th month in October

By

Cajsa Lykke Carlson

Published
Nov 4, 2015

Overall UK shop prices posted deflation of 1.8% in October, compared with 1.9% in September.

This makes October the 30th month of falling shop prices. Non-food deflation decelerated to 2.7% from 2.9% in September and the Shop Price Index reported deflation of 1.7% on a 12-month basis.

Helen Dickinson, the BRC CEO, said: “From the customer point of view, people will be happy that October was the 30th month of shop price deflation at 1.8 per cent, with the trend likely to continue. Both non-food and food products saw drops, falling 2.7 per cent and 0.4 per cent respectively. Clothing, books and DIY items were among the goods that experienced the deepest levels of deflation, reflecting low commodity prices and competition between retailers. It is interesting to note that fresh food deflation slowed to 1.0 per cent and ambient food inflation slowed to 0.4 per cent."

“Consumer confidence slowed but as we approach the busiest time of the year for the industry retailers will try to boost confidence by continuing to offer great value to customers as they pass on savings and price competitively."