Shop prices fall for first time in nearly three years but may rise again - BRC
Wet weather has meant retailers have cut the cost of summer goods to shift units as food inflation rose at the slowest rate in more than three and a half years.
Tuesday 27 August 2024 08:50, UK
Shop prices have come down for the first time in nearly two years, according to industry data.
Goods in UK shops cost 0.3% less in August than a year ago, figures from industry body the British Retail Consortium (BRC) showed.
The price fall is due to discounts on summer clothing and other seasonal household goods. Wet weather and the cost of living crisis prompted retailers to sell reduced items to shift stock, the BRC said.
Trading had been difficult for shops due to those factors, it added.
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Prices had been rising but at a slower pace each month. Not since October 2021 have prices dropped.
While some prices are still going up, they're going up less than previous months.
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Tap hereFood inflation stood at a reduced 2%. According to the data, there was 0.3% deflation (price falls) overall as non-food items became 1.5% less expensive this month.
It was the biggest monthly food inflation decrease since December 2020 as fresh food prices, particularly fruit, meat and fish, eased as suppliers' costs lessened.
Will prices continue to come down?
This may not continue, according to the BRC's chief executive Helen Dickinson.
"The outlook for commodity prices remains uncertain due to the impact of climate change on harvests domestically and globally, as well as rising geopolitical tensions.
"As a result, we could see renewed inflationary pressures over the next year."
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The official measure of inflation may tick up as energy prices rise in the autumn, with the energy regulator Ofgem raising the cap from October.