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Shop prices reported deflation for the 30th consecutive month in October, according to the British Retail Consortium (BRC) and Nielsen’s latest Shop Price Index.
Overall shop prices reported deflation of 1.8% in October compared with a 1.9% drop in September. On a 12-month average basis, the index reported deflation of 1.7%.
Non-food deflation decelerated to 2.7% from 2.9% in September
Helen Dickinson, chief executive at the BRC, said: “From a big picture perspective, retailers will be considering the implications of the recent government announcements – implementing the National Living Wage, the apprenticeship levy and the increasing cost of business rates requires retailers to find over £14bn of efficiency improvements over the next five years.
“In a competitive, deflationary environment where jobs and growth in communities up and down the country are vital, the industry’s ability to play its part in investing in the Living Wage is being hindered by the business rates system.”
Mike Watkins, head of retailer and business insight at Nielsen, added that, with the important Christmas trading season arriving soon, non-food retailers will need to maintain these lower prices to drive footfall.
