For the first time in nearly three years, there has been a drop in shop sales. Prices in August were down 0.3% from last year – the lowest rate since October 2021.
The research also marks the first period of price deflation. This price-drop announcement has been highlighted by the British Retail Consortium (BRC)
This price-drop was driven by non-food items, namely clothing and furniture. However, food prices have continued to rise at a slow pace. Prices of non-food goods were 1.5% lower in August than they had been a year ago. Food prices were up 2%, but this was down from July’s figure of 2.3%.
The BRC said non-food retailers had been “discounting heavily to shift their summer stock, particularly for fashion and household goods”.
BRC chief executive Helen Dickinson said that while households will be “happy” to see the prices of some goods falling, there was no guarantee this trend would continue.
“The outlook for commodity prices remains uncertain due to the impact of climate change on harvests domestically and globally, as well as rising geopolitical tensions.” Dickinson said.
The research indicates shifting consumer buying trends, alongside changes to the UK economy.