January experiences record shop price deflation
Shop price deflation accelerated 1 per cent in January, as retailers used aggressive discounting on clothing, furniture and electrical goods to lure shoppers back after the peak trading period.
According to the latest figures from the British Retail Consortium-Nielsen Shop Price Index, shop price deflation accelerated 1 per cent last month from 0.8 per cent in December, making it the ninth consecutive month of falling prices, and the sharpest fall on record since the series began in December 2006.
Helen Dickinson, the BRC's director general, said: "January is always a key month for sales and promotions but discounts have been deeper and more widespread than last year and we are seeing this trend continuing.
Dickinson added: "Our figures show that there have been particularly good deals to be had in clothing, furniture and electrical items this month as retailers prepare for their new collections."