British shop prices fell as sharply in August but the price of food rose for a second month in a row, according to the British Retail Consortium.
August retail prices were 1.4 percent lower than a year earlier, matching a similar fall in July.
BRC Director General Helen Dickinson said in a statement:
“Annual food prices rose for a second month but once again the rise was marginal, by just 0.2 percent year-on-year, and is likely to be a temporary fluctuation in a longer-term downward trend driven by ongoing competition.”
This comes just after yesterday’s news of poor retail sales in August, which were down to late timing of the bank holiday.
The month officially ended on the 29th, meaning that the Bank Holiday spending will be included in September’s figures.
Total UK sales were up 0.1% compared with the same month last year, while like-for-like sales, which exclude new store space, fell 1.0%.