The overall shop prices in the UK have declined from 0.8% in December 2013 to 1.0% in January 2014, according to the British Retail Consortium (BRC) and Nielsen Shop Price Index.

The prices have been continuously falling for the last nine months and are lowest since the index began in December 2006.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The January 2014 index also found that food inflation slowed to 1.5% from 1.7% in December, and non-food deflation increased from 2.3% in December 2013 to 2.7% in January.

British Retail Consortium director general Helen Dickinson said shop prices are falling at their fastest rate for seven years, a new record for their data.

"January is always a key month for sales and promotions but discounts has been deeper and more widespread than last year and we are seeing this trend continuing. Our figures show that there have been particularly good deals to be had in clothing, furniture and electrical items this month as retailers prepare for their new collections," Dickinson added.

See Also:

She further added that food retailers have managed to keep prices low and with relatively stable commodity prices, the forecast looks good in general.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Nielsen retailer and business insight head Mike Watkins said the start of 2014 has seen a continuation of both slow retail growth particularly in food, and a continuation of slowing inflation.

"With the first few weeks of January a time when many households take stock of personal finances, the fall in shop price inflation will be a welcome boost for consumers," Watkins added.