Shop Price Inflation Falls to Lowest Level in More Than 3 Years

Shop Price Inflation Falls to Lowest Level in More Than 3 Years

Shop price inflation has dipped to its lowest level in more than three years, driven by big discounts and fierce competition, the latest data has found.

September was a good month for bargain hunters, according to the British Retail Consortium (BRC) and NielsenIQ Shop Price Index. Consumers benefited from cheaper overall prices, which were 0.6 percent lower than they were a year ago.

Last month’s figures were also an improvement on August, when shop price deflation of 0.3 percent was recorded. Monthly prices have been dropping in seven of the last nine months, said BRC Chief Executive Helen Dickinson.

Big discounts by retailers, which remain highly competitive, pushed shop price inflation down.

“This was driven by non-food, with furniture and clothing showing the biggest drops in inflation as retailers tried to entice shoppers back. Food inflation edged up slightly as poor harvests in key producing regions led to higher prices for cooking oils and sugary products,” Dickinson said in a statement.

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