After experiencing months of significant price hikes, the retail household furniture sector is now facing a new challenge as deflation makes a comeback.
According to data from the Office for National Statistics (ONS), prices for household furniture dropped by 1.5% in January. This marks a stark contrast to the 1.2% increase witnessed in December and the substantial 11.1% surge recorded in January 2023. Over the past year, price increases have averaged at 6.1%.
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In the realm of outdoor furniture, the deflation trend is similarly evident. Garden furniture prices saw a notable decline, plummeting from a 3% increase in December to just 0.2% in January 2024, following an 11.9% rise in the same month of the previous year.
Meanwhile, other furniture and furnishings also experienced a decrease in price, with the rate falling to -0.5% from 4.8% in December and 5.8% in January 2023.
The deflationary trend extends beyond furniture to the realm of flooring. Retail prices for carpets and flooring coverings witnessed a notable downturn in January, dropping by 0.5%. This stands in sharp contrast to the 4.8% increase seen in December and the 12.2% surge observed in January 2023.
The most significant drop was observed in carpets and rugs, where the rate plummeted from 7% in December to a mere 0.2% in January 2024. This marks the fourth consecutive month of decline after reaching a high of 12.1% in January 2023.
On the other hand, smooth flooring experienced a second consecutive month of price declines, albeit at a slower pace. The rate of decrease moderated from -3.8% in December to -2% in January, showing a significant deviation from the 17.3% increase recorded in January 2023.
Source: interiorsmonthly.co.uk
