UK Shop Prices Drop Again in October, More Falls Expected in Xmas Run-Up – BRC

Prices in British shops in October were 1.8 percent lower than a year earlier, a slightly less marked rate of decline than in September, the British Retail Consortium said on Wednesday.

The BRC said it expected shop prices to continue falling in the run-up to the Christmas trading period as retailers try to attract shoppers.

Food and non-food prices fell last month at a slower rate, the BRC said, with clothing, books and DIY items experiencing the deepest levels of deflation.

“With the all-important Christmas trading season arriving soon, non-food retailers will need to maintain these lower prices to drive footfall,” Mike Watkins, head of retail and businessinsight at data company Nielsen, which collates the data, said.

Reuters

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam