December discounting drives down shop prices
Shop prices continued to fall over the festive season as fashion and other retailers discounted in the run-up to Christmas.
Non-food prices fell by 3.2% in December, the BRC-Nielsen Shop Price Index shows, compared with a 3.7% decline in November.
This compares with a 12-month average non-food price decline of 3%, and is in line with the six-month average decline of 3.2%.
Overall shop prices including food fell by 1.8% in December, the same rate of decline as the previous month.
Helen Dickinson, chief executive of the British Retail Consortium, said: “It was welcome news for shoppers in the run up to Christmas as prices fell in December. As in November, non-food prices dropped, and retail firms who have been hardest hit by the pandemic this year, such as fashion outlets, are continuing to offer discounts.
Food inflation eases to lowest since March 2018 Print
6th January 2021
Food inflation eased to 0.4% in December, down from 1.3% in November, the lowest rate of inflation for the category since March 2018, new research reveals.
The BRC-Nielsen Shop Price Index shows fresh food prices fell by 0.9% in December, compared to a rise of 0.5% in November, marking the first fall in fresh food prices since January 2017.
In addition, ambient food inflation slowed to 2.3% in December, down from 2.5% in November.
Helen Dickinson, chief executive of the British Retail Consortium, said: “Notably, food inflation eased to its lowest since March 2018, with a significant fall in fresh food prices. This was largely driven by last year’s decrease in global food prices filtering through onto British shelves, as well as the fierce competition between supermarkets to offer customers the best value, quality goods in the face of testing circumstances.