British shop prices decline as ‘intense competition’ grows

Overall shop prices reported deflation of 1.7 percent in March from the 2.0 percent decline in February, according to The British Retail Consortium.

Helen Dickinson OBE, chief executive, British Retail Consortium said: “This month shoppers can celebrate three years of falling non-food prices. While non-food deflation slowed to 2.6 per cent in March, lower than the 3.0 per cent reported over the last three months, March was the 36th month in which consumers have benefited from falling prices. March also marked the 35th month of falling overall prices.

“Overall, shop prices fell by 1.7 percent last month compared to March 2015 as a result of continuing intense competition and retailers ongoing investment in price.”

Mike Watkins, head of Retailer and Business Insight, Nielsen said: “Shoppers are still making changes to how they spend to stay within their household budget and looking out for price cuts and promotions is one of the ways to save money.

“So with shop prices continuing to be lower than a year ago this is good news for shoppers. With Spring arriving, retailers will be hoping that this drives store traffic as so far this year, retail sales have been rather unpredictable.”