Published on May 6th, 2015 | by The GC Team0
Shop price deflation remains low in April
April recorded the 24th consecutive month of falling shop prices and the 25th consecutive month of falling non-food prices. According to the BRC-Nielsen Shop Price Index, overall deflation of 1.9% was reported, following a 2.1% fall in March.
Food reported annual deflation of 0.9% in April for the second consecutive month, while non-food deflation decelerated to 2.5% from 2.8% in March, with deals in clothing, electricals, books, stationery, home entertainment, DIY, gardening and hardware.
“These trends help to illustrate how retail has helped the consumer keep the cost of living down in recent years,” said BRC Director General Helen Dickinson.
On a 12-month average basis, the Shop Price Index reported deflation of 1.7%.
“This week sees a general election in the UK and it’s my hope that the next Government notes today’s figures as they’re indicative of an important story from the last few years,” said Dickinson.
“Despite the low margins in a fiercely competitive market, retailers have kept prices down and in doing so made sure the public are able to see their wages go that little bit further during a difficult period. That help is set to continue.”
Mike Watkins, Head of Retailer and Business Insight at Nielsen, said: “There is little external pressure on food or non-food prices and CPI is also at a historic low point, so this is good news for consumers.
“However, the challenge for retailers is that despite consumer confidence being back to pre-recession levels, many households are still cautious about spending, and for those with more disposable income, some appear to be spending a little more outside of retail, for example on leisure and entertainment. So we anticipate promotions continuing over the summer months to help the momentum in retail sales.”