The British Retail Consortium (BRC) has reported that shop prices in the UK have fallen at their quickest rate in over three years this September, as retailers cut prices in a bid to entice customers.
Overall shop price deflation was 0.6 per cent in September, the fastest drop since August 2021, and up from a 0.3 per cent deflation rate last month.
Non-food items saw steep deflation at 2.1 per cent, accelerating from 1.5 per cent last month, driven by discounts on clothing and furniture amid low demand due to unseasonal weather and a squeeze on household budgets.
NielsenIQ’s Head of Retail and Business Insight, Mike Watkins, noted that non-food prices in deflation would help shoppers as they planned their household budgets for the rest of the year.
“The slight increase in food inflation is indicative of shop price inflation stabilising closer to the long-term range,” he said. “Even so, retailers will still need to focus on driving demand with attractive promotions over the next few weeks.”
BRC Chief Executive, Helen Dickinson, added: “September was a good month for bargain hunters as big discounts and fierce competition pushed shop prices further into deflation.
“Shop price inflation is now at its lowest level in over three years, with monthly prices dropping in seven of the last nine months. This was driven by non-food, with furniture and clothing showing the biggest drops in inflation as retailers tried to entice shoppers back.
“Easing price inflation will certainly be welcomed by consumers, but ongoing geopolitical tensions, climate change, and government-imposed regulatory costs could all reverse this trend.”
