UK retailers have reported the steepest fall in shop prices in three years as unseasonably wet weather in September pushed stores to offer significant discounts in a bid to attract shoppers.
According to the latest figures from the British Retail Consortium (BRC) and NielsenIQ, shop prices dropped by 0.6% year-on-year, compared to a 0.3% fall in August. This marks the sharpest decline since August 2021.
Helen Dickinson, chief executive of the BRC, said: “September was a good month for bargain hunters as big discounts and fierce competition pushed shop prices further into deflation. Non-food categories, particularly furniture and clothing, saw the largest drops as retailers sought to lure back hesitant shoppers.”
However, Dickinson cautioned that while easing price inflation is welcome news for consumers, geopolitical uncertainties, climate change, and government-imposed costs could reverse this trend in the future.
Non-food prices fell by 2.1% year-on-year, a more significant drop than the 1.5% seen in August, and the lowest rate since March 2021. On the other hand, food inflation rose slightly to 2.3%, driven by poor harvests in key producing regions, which pushed up prices for cooking oils and sugary goods.
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