Shop prices fall for 20th consecutive month

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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