Shop prices drop for 30th month in a row as competition heats up ahead of Christmas
UK shop prices fell in October for the 30th month in a row, dragged down by low commodity prices and fierce competition among retailers ahead of the crucial Christmas period.
Prices fell by 1.8 per cent on the year, figures for the British Retail Consortium (BRC) and Nielsen show, which was a slight slowdown on the 1.9 per cent drop in September.
Food reported annual deflation of 0.4 per cent from a 0.5 per cent fall in September, helped by a slowdown in fresh food deflation to 1.0 per cent.
Meanwhile non-food prices declined by 2.7 per cent. Clothing, books and DIY products experienced the sharpest drop in prices, as retailers attempted to win over shoppers with bargains and special offers.
Mike Watkins, head of retailer and business insight at Nielsen, said: “With the all-important Christmas trading season arriving soon, non-food retailers will need to maintain these lower prices to drive footfall and supermarkets will be working hard to get sales growing again, as intense price competition is having a deflationary impact on the overall shopping basket.
“Levels of retail spend are going to be hard to predict over the next few weeks but we can anticipate strong media campaigns and probably more promotional activity, so all round its good news for shoppers."