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Record deflation at the tills and the slide is expected to continue
BRITISH shop prices are still sliding downwards, with the fastest drop on record recorded in July, the 15th consecutive month of retail deflation.
Shop prices dropped by 1.9 per cent in the 12 months to July, according to figures released this morning by the British Retail Consortium (BRC) and Nielsen. The decline is the fastest that the survey has ever recorded since it began in 2006.
Food prices still increased during the period, but rose by only 0.3 per cent, which was also a record low for the index.
“Against a backdrop of stable commodity markets, the stronger sterling making imports cheaper and wavering retail spending, current levels of deflation are expected to continue,” said BRC director general Helen Dickinson.