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Overall shop prices in the UK fell 1.8% in January compared with the same month last year, new figures figures show.
That’s according to British Retail Consortium (BRC) and Nielsen’s monthly Shop Price Index, which found the fall was down from the 2% fall in December and in-line with the 12-month average price deflation of 1.8%.
Non-food deflation, which includes jewellery, remained at 3% for the second consecutive month.
Helen Dickinson, chief executive of the BRC, said higher levels of consumer confidence has resulted in higher spending in leisure, entertainment and eating out, rather than shopping, she said this has provided a backdrop to a “tough” trading environment for retailers but “great” news for consumers.
She said: “January marked the 33rd month of falling shop prices and the 34th month of non-food price drops. Non-food prices saw an impressive 3% drop for the second consecutive month, driven largely by reductions in clothing, footwear, books, DIY, stationery and home entertainment.”
Mike Watkins, head of retailer and business insight at Nielsen, added: “Sales momentum in January has been slow for some retailers with shoppers seeking out the best prices online and in store, and this competition is helping keep non-food shop prices lower than a year ago.”
