Shop prices down 1.9% in September

Shop prices were down 1.9% in September compared with the same time last year, down from the 1.4% decline in August.

This is according to the latest British Retail Consortium (BRC) and Nielsen Shop Price Index which found that non-food deflation accelerated further to 2.9%, from 2.4% in August. On a 12-month average basis, the index reported deflation of 1.7%.

Deflation was largely driven by non-food items, although food prices did return to deflationary territory. Annual deflation of food prices stood at 0.5% during the month from a 0.2% rise in August.

Mike Watkins, head of retailer and business insight at Nielsen, said: “It’s good news for shoppers that shop prices are again lower than a year ago in supermarkets and this will help stimulate spending in the important last quarter of the year. This will allow shoppers to plan with more confidence when juggling the household budget.

“Within food retailing, there is still downward pressure on prices and this is expected to continue as supermarkets battle for the wallets of the Christmas shopper, whilst on the high street, many non-food retailers are using strong, seasonal promotions to drive sales growth.”