Shop price deflation reached 0.3% in August, marking a shift from inflation of 0.2% the previous month. This figure is below the 3-month average rate of 0.0%. The annual growth rate for shop prices remains at its lowest since October 2021.
Non-food prices continued to deflate at -1.5% in August, a decrease from -0.9% in July. This rate is below the 3-month average of -1.1%, marking the lowest inflation rate since July 2021.
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Helen Dickinson OBE, Chief Executive of the BRC, states: 'Shop prices have fallen into deflation for the first time in nearly three years, primarily driven by non-food deflation. Retailers heavily discounted summer stock, particularly in fashion and household goods, due to a challenging summer of poor weather and ongoing cost-of-living issues.'
She continues: 'Retailers will continue to strive to maintain lower prices, which will be welcomed by households. However, the outlook for commodity prices remains uncertain due to climate change impacts on harvests and rising geopolitical tensions, which could lead to renewed inflationary pressures.'
Mike Watkins, Head of Retailer and Business Insight at NielsenIQ, adds: 'Shop price inflation fell again in August, as many non-food retailers maintained promotional efforts due to unpredictable weather, and food retailers introduced more price cuts to boost sales during the 'summer of sport'.'
More information:
BRC
www.brc.org.uk