Shop price deflation 'starting to ease'.

05 January 2017

Shop price deflation eased in December, figures suggest
Shop price deflation eased in December, figures suggest

Shop price deflation eased last month, with new figures suggesting the possible start of an upward trend.

The latest BRC-Nielsen Shop Price Index indicates that prices were down by 1.4% in December when compared with the same time in 2015. But that represents an easing from the 1.7% seen in the previous two months.

Most of the categories assessed as part of the report witnessed price increases, in month-on-month terms.

Clothing and footwear witnessed month-on-month inflation for the first time in close to two years.

Elsewhere, the study said deflation across non-food prices slowed to 1.9%, compared to 2.3% in the previous month. That marks the weakest rate of deflation seen since June 2015.

BRC chief executive Helen Dickinson said: "We've said for some time that we expect to see underlying inflationary pressures, notably from the post-referendum fall in the value of the pound, feed through into shop prices.

"It's too early to confirm that this is what we're seeing in December's figures: timings of seasonal discounts can cause monthly fluctuations at this time of year and retailers have continued to find ways to mitigate the impact on consumers."

This article was written by the Press Association, for Legal & General. Please note the views expressed in this article are not necessarily the views of Legal & General and its group of companies.

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