The month of November saw prices in retail stores across the country fall by a record amount- according to a new report. The report states that the main driving factor behind the price dive was the high level of competition between high street chains and supermarkets.
In the year up to November, retail prices dropped by 2.1% when compared with the same period last year. This represents a joint low with March early this year. The report was released by the British Retail Consortium-Nielson Shop Index.
The report said that this is now the 31st month in a row in which prices have dropped; prices fell by 1.8% in October.
The survey did not include data from the sales period surrounding Black Friday but it did state that many retailers cut their prices in the run-up to the sales day. The report also revealed that the cost of non-food prices had fallen by around 3.3% in the year to November.
Supermarkets, which have been put under a lot of pressure recently, had seen a fall of just 0.3% because of double digit drops in the price of commodities such as cattle-feed, coffee and soybean.
The director of the British Retail Consortium, Helen Dickinson, commented saying:
"Shop prices fell by 2.1% last month as a result of retailers continuing to invest in price, intense competition in the run-up to Black Friday and lower commodity prices, marking a joint record low for falling prices."
"Food prices fell by 0.3% as the impact of past falls in oil, weaker demand in emerging markets and a strong pound, helped support a continued deflationary environment."
She went on to say that government policies, such as the new national living wage, will cost retailers around £14bn by the end of the decade.
"This trading environment should be considered with the impact of the industry 's regulatory burden.
"BRC analysis shows that the combined cost of policy announcements since the general election adds up to approximately £14bn over the next five years."
Mike Watkins, the head of retailer and business insight at Nielsen, said that consumers had been seeing falling prices "for the best part of two years".
He went on to say:
"Falling prices across the high street and food retailers in November will be another welcome boost for shoppers as they plan their Christmas spending."