British Shop Prices Fall in December, More Retail Deflation Seen – BRC

Shop prices in Britain fell in December for the 32nd consecutive month, the British Retail Consortium said on Wednesday, the latest sign that inflation is likely to remain tame.

The BRC said prices in British shops eased by 2 percent over the 12 months to December, compared with a 2.1 percent fall in November that was jointly the steepest on record.

Non-food prices fell 3 percent year-on-year in December, a slightly smaller decline than November’s, as clothing and footwear prices continued to slip.

Against a backdrop of weak global commodities prices, food prices eased 0.3 percent.

“We can expect the current levels of deflation across the retail industry to continue for the first half of 2016,” Mike Watkins, head of retail and business insight at data company Nielsen, which collates the survey, said.

“After the unseasonably mild autumn and early winter, many non-food retailers will use price cuts and targeted promotions early in the year.”

Reuters

Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.