Shoppers eye up bargains as prices continue to fall
Shop prices have reached their lowest level since 2009, falling for a record 37th month in a row.
Overall prices, including food and non-food items, dropped by 1.8 per cent in May, according to the BRC-Nielsen Shop Price Index.
Pre-summer fashion bargains have seen clothing and footwear prices fall by 7.1 per cent, and overall non-food deflation rise to 2.9 per cent - with discounts also to be had in furniture, electricals, and floorcoverings.
Food prices fell 0.3 per cent overall in May - after a slight increase in April - with fresh food prices falling by 0.8 per cent.
Mike Watkins, head of retailer and business insight at Nielsen, said: “Shop price inflation remains below consumer price inflation, and falling food prices are still being driven lower by global commodity prices as well as intense competition, which shows no sign of relenting any time soon.
“Non-food prices also continue to fall, and with shoppers indicating that they are becoming more cautious about spending, retailers will have to keep prices the same or probably even lower over the next six months.”
British Retail Consortium chief executive Helen Dickinson said: “We’ve experienced a record run of falling shop prices and, for the time being, there’s little to suggest that’ll end any time soon – so the good news for consumers continues.
“Indeed, with food prices remaining flat at the same time as wages continue to grow means customers will have yet more money in their pockets at the end of their weekly shop.”