Shop Prices in UK Fall at Fastest Pace Since 2006
June saw prices that were 1.8% lower than earlier in the year. The BRC’s survey began in 2006 and it’s the biggest annual fall in prices since this began and this is the 14th month in a row that has seen prices decline.
The price of clothing fell along with non-food items which were 3.4% lower in June compared with a year ago, while the rise in the cost of food slowed to 0.6%-its slowest pace since the series began.
It must be noted however that the BRC survey does not include online retailers or costs such as energy, transport and housing, which feed into the broader official consumer price inflation (CPI) measure targeted by the Bank of England.
The BRC has stated that competition among retailers for market share is driving the record fall in prices.
BRC director-general Helen Dickinson said, “Fierce competition among grocers has driven food price inflation to record low levels and with some grocers having announced plans to keep prices down, consumers stand to benefit for a while to come.”
CPI inflation reduced to a four and a half year low of 1.5% in May, helped by the sharpest fall in food and non-alcoholic beverage prices for a decade.