Apparel and footwear deflation reaches new level

Apparel and footwear deflation has reached a hit a new level in the UK,

according to the latest data from the British Retail Consortium/Nielsen monthly shop price Index, with year-on-year numbers reaching 12.8 percent in March, compared to 12 percent in February.

The highest levels of deflation were seen in womenswear and childrenswear, with overall apparel and footwear deflation occurring for the past seven months due to strong discounting used by retailers to pushes sales in this division.

Retail prices for non-food items were 3.2 percent lower last month than the same month a year ago, the lowest ever reported.

Overall retail prices reported deflation for the eleventh consecutive month in March, increasing to 1.7 percent from 1.4 percent in February. The BRC state that it is the deepest level of deflation witnessed since it began is monthly index in December 2006.

Helen Dickinson, BRC director general, commented "Retailers have rightly been getting recognition for their contribution to the economic recovery. But keeping costs down for ordinary people is just as important. And that's why the continuing deflation we are seeing in shop prices is such good news for consumers."