Shop price deflation during July was steady at -0.1%, reports BRC-Nielsen.
July was the second consecutive month of deflation since October 2018. This is below the 12- and six-month average price increases of +0.3% and +0.4%, respectively.
Non-food prices fell at by -1.2%, the same rate of decrease as in June.
Similar to last month, July’s headline inflation figure was driven by a sharp decline in non-food prices. Low consumer confidence has kept shoppers from spending on discretionary items, and, given the competitive environment, retailers are, on average, using price discounts to attract customers.
Helen Dickinson OBE, chief executive of the British Retail Consortium (BRC), says: “Shop prices fell by -0.1% for the second month in a row. Many consumers will be pleased to see the price of non-food products continuing to fall at a steady rate, underlining the stiff competition between retailers that is driving down prices."