BRC reports, 'shop prices down on a year ago', with non-food deflation at 1.4% last month, while DIY and gardening sees 2% uplift.
Shop prices were deflationary for the second consecutive month in September, reported the British Retail Consortium (BRC) in its BRC-Nielsen Shop Price Index. Although food inflation increased to 2.5% last month, annual non-food deflation was 1.4% in September, unchanged from August.

DIY and gardening saw a 2% uplift in shop prices compared with September last year and was 0.3% higher than the previous month. According to the BRC, inflation has remained relatively stable in the sector over the past six months.

BRC consortium director Stephen Robertson said: "Overall shop prices are down on a year ago for the second month in a row. Prices for non-food goods have been deflationary for ten consecutive months now with clothing, electricals and furniture showing the biggest falls as retailers discount to generate sales.

He added: "Generally, lower prices are likely to go on helping households in the run up to Christmas."

Furniture and floorcovering saw a 2.6% drop in prices in September compared with last year but still saw inflation of 0.2% on August. The BRC believes the recent upturn in the housing Market could give sales in the category a much-needed boost.

Prices in the electrical sector were 4.4% lower than September 2008 and 0.4% lower than last month, explained, said the BRC, by high levels of heavy discounting. It expects deflation to stay relatively steady until the reversal of the temporary VAT cut in January.

Nielson senior manager, retailer services Mike Watkins added: Non-food process remain lower than a year ago but many shoppers are still reluctant to spend on higher ticket items despite VAT reductions."