Shop price deflation during January was the lowest level recorded for seven years.
The British Retail Consortium (BRC) Nielsen Shop Price Index reported that prices had fallen for the ninth consecutive month, dropping by one per cent – 0.2 per cent quicker than the 0.8 per cent drop recorded for December 2013.
“Shop prices are falling at their fastest rate for seven years, a new record for our data,” BRC director-general Helen Dickinson said.
“January is always a key month for Sales and promotions but discounts have been deeper and more widespread than last year and we are seeing this trend continuing.”
“The start of 2014 has seen a continuation of both slow retail growth particularly in food, and a continuation of slowing inflation,” added Mike Watkins, head of retailer and business insight for Nielsen.
“With the first few weeks of January a time when many households take stock of personal finances, the fall in shop price inflation will be a welcome boost for consumers.”
Deflation for non-food items, such as electronics and home entertainment, continued to sit below two per cent for the seventh consecutive month.
Prices for non-food products dropped by 2.7 per cent in January, assisted by post-Christmas sales. They had previously fallen by 2.3 per cent in December.
Image of price tag courtesy of Shutterstock.co.uk