Prices flat in October
Published: 5 November 2009
Latest BRC-Nielson Shop Price Index reports a zero rate of inflation, with prices no more than a year ago, leaving retailers to 'battle it out' over Christmas.
Shop prices were broadly flat in October on a month-on-month basis, with a zero rate of inflation - largely unchanged from last month's 0.1% rate of deflation.
The non-food category reported a slight fall in deflation from 1.4% to 1.3% and the British Retail Consortium (BRC) believes customers will reap the rewards, as retail prices remain level with 2008.
BRC director general Stephen Robertson explained: "This is a great time to be a customer. Overall shop prices are no more than they were a year ago. Food inflation has tumbled by three quarters since its peak last August and is expected to remain low for the rest of the year. The price of non-food goods has been deflationary for 11 months in a row - with the biggest falls in clothing, footwear and electricals."
He added: "Christmas is lining up to be a punch-up between retailers as they battle it out for market share. Customers can reap the benefits from all the promotions and discounts."