Shop prices fall 1.9 per cent
Prices in British shops last month were 1.9 per cent lower than a year earlier, the same rate of decline as in April when Britain’s overall inflation rate turned negative, according to the British Retail Consortium (BRC).
The BRC said food prices fell 0.9 per cent, also unchanged from April, although fresh food prices in particular plunged 1.9 per cent, their sharpest fall since the survey started in 2006.
Mike Watkins, head of retailer and business insight at survey compiler Nielsen, said: “Retailers continue to use price cuts and promotions to stimulate sales which is helping to maintain shop price deflation, and we see little evidence to suggest that prices will rise in the near future.”
The BRC figures show prices falling much faster than the broader consumer price inflation measure targeted by the Bank of England. The CPI includes faster-rising costs such as utility bills, entertainment, healthcare and university tuition.
Consumer price inflation fell below zero for the first time in more than half a century in April but BoE Governor Mark Carney said the dip was likely to be brief.