Shop prices fell by -0.4% in August compared to a 0.1% decrease in July, reports BRC-Nielsen. This was below the 12- and six-month average price increases, both of +0.3%, and the fastest rate of decline since June 2018.
Non-food prices fell -1.5%, compared to July’s decrease of -1.2% – also the fastest rate of decline since June 2018.
Weak consumer spend and intense competition kept price increases at bay, with many retailers using discounts, especially for basic items. The prices for five categories – DIY, Furniture, Clothing, Electricals and Other Non-Food – were below their August 2015 prices.
BRC chief executive Helen Dickinson OBE says: “Consumers were the real winners this month as prices fell at their fastest rate in over a year. Prices of non-food goods fell at a faster rate than both the previous month and the 12-month average, while food inflation eased slightly due to higher levels of discounting from supermarkets.
“Weak consumer spending and stiff competition has kept prices down in the UK, however a disruptive no-deal Brexit, which would raise the cost of imported goods, could reverse this trend. In the interests of both consumers and retailers, the Government must redouble its efforts to find a workable agreement with the EU that would avoid a no-deal scenario.”