The British Retail Consortium (BRC) reported a continued decline in clothing and footwear prices for the seventh consecutive month in July.
- Shop price annual inflation remained at 0.2% in July, marking its lowest rate since October 2021, according to the BRC.
- Non-food prices experienced deflation, showing a slight change from -1% in June to -0.9% in July, the BRC-NielsenIQ Shop Price Index reveals.
- Helen Dickinson, the BRC Chief Executive, attributes the price fall to persistently weak consumer demand.
- Despite easing inflation, uncertainty looms due to climate change impacts and geopolitical tensions affecting commodity prices.
The British Retail Consortium (BRC) has announced that clothing and footwear prices fell in July, marking the seventh month of continuous decline. This trend has been attributed to various economic factors affecting consumer demand. The shop price annual inflation held steady at 0.2%, which remains the lowest rate observed since October 2021. This stability in price inflation offers a reprieve to UK households that have been battling high inflation rates over the past two years.
According to the latest data from the BRC-NielsenIQ Shop Price Index, non-food items continued to experience price deflation, albeit at a slightly slower rate, moving from -1% in June to -0.9% in July. This deflationary trend in non-food prices has been persistent, reflecting ongoing challenges within the retail sector.
Helen Dickinson, the BRC’s Chief Executive, pointed out that the reduction in clothing and footwear prices largely results from continued weak consumer demand. She noted that this situation provided an opportunity for holidaymakers to acquire summer apparel at reduced prices, as retailers attempt to drive sales amidst sluggish demand.
Despite the positive news of easing prices, Dickinson cautioned about future inflationary pressures. She highlighted potential disruptions due to climate change impacts on domestic and global harvests and increasing geopolitical tensions, suggesting that these factors could potentially reverse the current trend of stable or declining prices.
The current economic environment, while showing signs of stabilisation in terms of inflation, remains precarious. Stakeholders in the retail sector continue to monitor these developments closely, aiming to navigate the complex interplay of factors influencing the market.
The continued decline in clothing and footwear prices in July offers temporary relief amidst a complex and uncertain economic landscape.
