Shop prices fall for 13th consecutive month

Shop prices fell for the thirteenth consecutive month in May, according to new a new report from the British Retail Consortium and Nielson.

The BRC/Nielsen index registered a 1.4% decline last month, remaining unchanged from April.

Non-food reported annual accelerated deflation of 2.8% in May from 2.7% in April, while clothing and footwear prices have dropped by 11.4% in the past year.

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"We’ve also past the fourteenth consecutive month of non-food deflation, mainly as the result of good bargains in categories popular with consumers in summer months such as clothing and footwear,” said BRC director general Helen Dickinson.

"With the World Cup fast approaching I would expect retailers to continue to keep prices down for the foreseeable future.”

Nielson head of Retailer and Business Insight Mike Watkins added: "Little in the way of immediate seasonal or weather related price increases is anticipated so the outlook for the next three months is for relatively stable shop price inflation. Helped by the increases in consumer confidence since the start of the year, this should encourage shoppers to spend more freely over the summer months."



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