The summer months saw retailers provide plenty of attractive offers on fresh food goods, which saw their lowest level of inflation this year, with vegetables, fish and also milk, cheese and eggs contributing to the downward pressure.
This also includes “big-ticket goods” that are associated with the summer, such as gardening, electricals, DIY, furniture and floorcovering.
“What’s more, as the UK economy continues to pick up, the benefits of subdued cost increases – oil and commodity prices remained relatively flat over the first half of the year incurred by retailers will be passed on to customers”, said Helen Dickinson, BRC director general.
Mike Watkins, head of retailer and business Insight at Nielsen, said: “Many non-food retailers will have looked to keep prices stable as end of season ranges sell through, and for supermarkets there was an opportunity to capitalise on the improved summer weather by keeping prices low, to tempt shoppers to spend a little more on food and drink.
“With the trading environment still challenging, all retailers will now be keen to keep prices as competitive as possible to encourage consumers back into store after the summer holidays.”