September marks the 29th consecutive month of falling shop prices in the UK, according to the latest figures from the BRC-Nielsen Shop Price Index. It reveals that UK shop prices fell by 1.9 percent in September year-on-year from a 1.4 percent decline in August.
Food prices returned to deflationary territory, down 0.5 percent from a 0.2 percent rise in August, while non-food deflation accelerated further to 2.9 percent from 2.4 percent in August. On a 12-month average basis, the Shop Price Index reported deflation of 1.7 percent. The index also noted that clothing and footwear prices declined by 6 percent.
British Retail Consortium director General, Helen Dickinson, said: “September saw significant prices drops in both food and non-food goods marking the 29th consecutive month of falling shop prices.
"Overall, shop prices fell by 1.9 percent this month, largely driven by competition and great deals across a large number of categories. Non-food prices fell even faster than the previous month, reporting drops from 2.4 percent in August to 2.9 per cent in September.”
Mike Watkins, head of retailer and business insight, Nielsen, added: “It is good news for shoppers that shop prices are again lower than a year ago in supermarkets and this will help stimulate spending in the important last quarter of the year. This will allow shoppers to plan with more confidence when juggling the household budget. On the high street, many non-food retailers are using strong, seasonal promotions to drive sales growth.”