SHOP PRICE inflation dropped in January, figures out today from the British Retail Consortium (BRC) showed, as last year’s VAT rise fell out of the calculation.
Overall, inflation dropped to 1.4 per cent from 1.7 per cent in December, helped by falling commodities prices and declining freight costs, as well as ongoing promotions and discounts.
Food prices rose 3.7 per cent in the year to January, down from 4.2 per cent a month earlier and their slowest rate in 18 months, while non-food prices stayed still after a 0.3 per cent rise in 12 months to December.
Clothing, furniture and electrical all saw prices fall over the year, with electrical recording their fastest deflation in three years.
“Further falls in the official rate of inflation, which are expected during the coming months, should be a boost to customers’ budgets and, crucially, should help to improve consumer confidence,” said the BRC’s Stephen Robertson.
Meanwhile Experian’s footfall data, out yesterday, showed visits to shops fell 2.5 per cent in January compared with the same month of 2011, though retail parks experienced a 4.9 per cent increase in footfall.
