Steep price reductions in furniture and fashion have driven this month in Britain in Britain, although the wider fall rate has begun to slow down.
According to the British Retail Consortium (BRC) and market research agency Nielseniq, the retail prices fell by 0.7% on an annual base-less than the annual decrease of 1% registered in December.
Helen Dickinson, Chief Executive of the BRC, explained the trend: “Extensive sale in January was good news for bargain hunters, but less good news for retailers who have to shift excess shares.” The non-food sector, which includes furniture and fashion, registered a fall of 1.8% on an annual basis, compared to a decrease of 2.4% in December when Black Friday deals seduced Christmas customers.
The inflation of the food price has been deposited to 1.6% of 1.8%, with fresh food inflation decreasing to 0.9% of 1.2%. Environmental food products-closed and dried goods, however, an increase of 1%of the month of 1%, led by sugar, chocolates and alcohol. The annual inflation of the environmental information still fell to 2.5% of 2.8%.
Despite the current disconnection, Dickinson warned that the price reduction “may not last much longer” because retailers have announced £ 7 billion in new costs in the budget. Higher national insurance policies for employers, the increased national living wage and a new packaging levy are all expected to increase prices.
The figures from the BRC often predict the Office for National Statistics’ (us) Consumer Price Index (CPI), which unexpectedly fell to 2.5%in December. The following CPI data, which cover January, must appear on 19 February, with analysts predicting an increase in inflation as a result of the increase in the energy price of OFEM and the new government policy. Nevertheless, the Bank of England is generally expected to reduce interest rates with 25 basic points to 4.5% during the meeting of 6 February, as a result of the slow economic growth of the UK.