Shop prices fell again last month driven by commodity weakness, global economic woes and retailer promotions.The latest British Retail Consortium-Nielsen Shop Index revealed that overall prices dropped 1.4 per cent in August ? marking the 28th consecutive month of falling prices. It found that food prices actually rose 0.2 per cent during the month, up marginally from the 0.1 per cent rise in July but that non-food deflation accelerated further to 2.4 per cent from 2.3 per cent in July. Clothing retailers made big cuts as each discounted heavily during the month in an attempt to shift stock, with prices falling on average by 5.4 per cent. Furniture and flooring saw a sharp deceleration in deflation to 1.2 per cent ? but great deals for shoppers could be found in books, stationery and home entertainment with prices throughout this category down by an average of 5.2 per cent. Read more about retail:
- High street sales freeze in the summer chill as shoppers head abroad
- Online retailers account for fastest consumer spending growth with four-year high
- BRC, Google and O2 back five-year plan to digitally ?reinvigorate UK high streets?
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