Shop prices fall to record low in March

Shop prices fell to a record low in March as overall shop prices reported deflation for the 23rd consecutive month, with retail prices 2.1% lower than a year earlier. 

This is according to the latest BRC-Nielsen Shop Price Index which found that overall shop prices had dropped even further than the 1.7% fall in February.

Non-food deflation dropped by 2.8% year-on-year in March, compared to 2.5% in February, while food reported annual deflation of 0.9% in March, from a 0.4% fall in February.

The BRC said the fall is largely the result of the slump in oil prices and the continuing fierce competition among supermarkets.

Mike Watkins, head of retailer and business insight, Nielsen, said: “Prices continue to fall across the retail industry and deflation is likely to be with us for the near future, which means shoppers are going to be able to stretch their budgets further when shopping in store or online.

“For many high street fashion, home and outdoor retailers, lower prices are being backed up by attractive promotions which comes at good time as momentum builds in selling late spring and early summer ranges.”