The BRC-Nielsen Shop Price Index for November 2014 shows that overall shop prices reported deflation for the nineteenth consecutive month, unchanged at 1.9% in November. Non-food deflation slowed marginally to 2.9% in November from 3.1% in October.
Helen Dickinson, British Retail Consortium director general, says: "Non-food prices fell compared with last year, meaning overall shop prices have been deflationary for nineteen consecutive months. November equalled the record low deflation of 1.9% reported in July 2014.
“We also saw the first rise in real incomes for over five years. Downward pressure from falling shop prices pushed the overall rate of inflation in the economy below the rise in average wages. With the recovery in the labour market robust, the outlook for further rises in real incomes looks positive.
Mike Watkins, head of Retailer and Business Insight at Nielsen, says: "It's been another slow start to Christmas trading and momentum on the high street has been reliant on retailers promoting and running 'discount days' to drive shoppers into store. With little inflationary pressure we anticipate the good festive deals to continue.”
The BRC-Nielsen Shop Price Index reported annual deflation of 1.9% for the second consecutive month remaining deeper than the twelve month average rate of 1.5%. Non-food deflation slowed marginally to 2.9% from 3.1% in October.
Non-food deflation slowed to 2.9% in November from 3.1% in October. Five sub-categories experienced deflation in November.
Deflation in the Furniture and Floorcoverings category decelerated to 2.1% from 2.7% in October, above both the twelve and three month averages of 1.8% and 2.3% respectively. House textiles reported a further acceleration in its deflation rate while the furniture, furnishing and carpet category experienced a marginal fall in its deflation rate. A number of surveys in October pointed to the housing market losing momentum over the last two months. The Nationwide reported prices grew by nine per cent year-on-year in October, the lowest rate since January. Stricter mortgage regulations are part of the blame as well as rising price-to-earnings ratios.