The British Retail Consortium has reported that September shop prices fell by 0.6% compared to the 0.4% decrease in August.
This drop is the highest rate of decline since May 2018.
The BRC found that non-food prices fell by 1.7% in September compared to August’s decrease of 1.5% which was again the highest rate of decline since May 2018.
Helen Dickinson OBE, chief executive of the British Retail Consortium, said: “Shop prices fell by 0.6% on the previous year as low consumer demand and stiff competition continued to push down prices. Non-food prices fell to their lowest since May 2018 as the effects of the 2016 currency depreciation finished filtering through the economy.”
Adding: “While consumers may welcome lower prices, falling consumer demand is squeezing retailers’ already tight margins. With business costs continuing to rise – including business rates, wage bills, and pension costs – the high street risks more big name closures. Reform of business rates remains the most effective way Government can support the retail industry – and they should grasp the opportunity with both hands.”