Shop price deflation slowed to 1.7% in December 2014, down from 1.9% the previous month, according to figures released by the British Retail Consortium (BRC).
This is the 20th consecutive month of continuous deflation in overall shop prices.
BRC figures reveal:
- food prices grew by 0.1% in December 2014
- deflation in non-food prices slowed from 2.9% in November to 2.8% in December
- shop prices fell by an average 1.6% over the last 12 months.
Helen Dickinson, director-general of the BRC, said:
“This significant run of deflation isn’t all bad news for retailers.
“Fierce competition – the hallmark of the UK retail industry – has seen these savings passed on directly to consumers. It’s a win-win scenario that many are predicting will continue long into 2015.”
Mike Watkins, head of retailer and business insight at Nielsen, said:
“With little external pressure to move prices upwards and an uncertain level of consumer demand retailers will be cautious about price increases so we can expect a continuation of deflation for at least the first part of 2015.”
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This material is for informational purposes only and should not be relied upon as professional advice.
