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According to the British Retail Consortium (BRC), shop inflation has fallen to its lowest rate in 16 months, giving Brits something to smile about. Savvy shoppers hitting the sales will be able to enjoy buying a bit more for their money as inflation has dropped on items such as clothes and shoes. The figures come after money matters have become an increasing worry for UK households, with many consumers finding it hard to afford basic purchases. Data from the BRC has shown how inflation fell from 2% to 1.7% between November and December, giving a small interlude of respite for cash-strapped shoppers. This lowered shop price inflation has been viewed by some as an indication that the Bank of England forecasts that inflation may drop in the coming year could be true. The drop in inflation is said to have been caused by price cuts across numerous products, such as electrical items, footwear and clothing. Commenting on the change, BRC’s Director General, Stephen Robertson, explained; “[that] consumers are likely to rein in spending in the wake of Christmas and price will remain the main battleground between retailers.” This battleground of competitive prices could then help to keep inflation at a lower level, thus confirming the Bank of England’s predictions. Of course, not all inflation rates have fallen– with the 0.3% decline applying purely to non-food based products.
Whilst non-food inflation may have experienced its lowest figure for over a year, food price inflation told an entirely different story. According to figures, inflation on food prices continued to grow rather than fall – although price competition between retailers would still have been fierce. In particular, the month of December saw high inflation rates on food products, reaching a figure of 4.2%. A massive 32% of people confessed to using their credit card to fund January sales shopping, according to Post Office research. Compare credit cards with Money Expert.
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