7 March 2016 - Janet Bird
Shop prices fell for the 34th successive month in February, dropping two percent year on year.
The continued deflation was revealed in data collected by the British Retail Consortium (BRC) and Nielsen in the monthly Shop Price Index.
Food prices fell by 0.4 percent, after increasing by 0.1 percent in January. The cost of non-food items fell three percent for the third consecutive month, with the footwear, clothing, electrical, book and DIY sectors showing the greatest drops.
Faltering consumer confidence and slow wage growth have forced retailers to offer cut prices and promotions in a bid to attract and retain customers.
With profit margins stretched increasingly thin, the BRC called on the Government to work more collaboratively with retailers to address high business rates and the impact of the national living wage and apprenticeship levy.