This is deepest level of deflation for an average of shop prices we’ve seen since BRC began their Shop Price Index in 2006. The figures include all superstores, town centre department stores, local parade stores, and shopping centres, but not e-commerce or online retail.
Inflation on food is increasing, but at the marginal rate of 0.3% in July, the lowest ever recorded.
Director general of BRC Helen Dickinson said: “Deep and widespread discounting across the grocery sector is intensifying with prices falling almost one per cent month-on-month another record jump.
“The stronger sterling making imports cheaper and wavering retail spending, current levels of deflation are expected to continue.
Structural changes in retail are challenging existing business models which in many cases are squeezing margins while other costs, such as business rates, continue to rise.”