Shop prices show steepest fall in years
The British Retail Consortium (BRC) have published figures showing that in March overall shop prices reported deflation for the eleventh consecutive month.
Helen Dickinson, Director General of the BRC, said: ‘It’s strong industry wide competition as retailers vie for a share of limited spending capacity that is driving this record breaking run’.
Food inflation was the lowest ever recorded at 0.8%, from 1.1% in February. Non-food deflation of 3.2%, from 3.0% in February, is also the lowest ever recorded.
Ms Dickinson continued: ‘Retailers have been responding to their customers with keen prices and promotions to maintain market share, and March saw the deepest deflation for eight years and the lowest inflation ever recorded for food. With food and drink representing 15% of disposable income for the least affluent third of households, retail’s significant contribution to maintaining standards of living is clear’.
The figures represent the fastest shop price deflation since the BRC/Neilson index began in December 2006.