Shop price deflation was -0.7% in January, above the deflation of -1.0% in the previous month, according to the latest Shop Price Index from BRC-NielsenIQ.
This was slightly above the 3-month average rate of -0.8%. Shop price annual growth was at its lowest rate since August 2021.
Non-food remained in deflation at -1.8% in January, edging up from -2.4% in the preceding month (slightly above the 3-month average rate of -2.0%).
Helen Dickinson, chief executive of the BRC, comments: “While overall prices fell in January, the pace of shop price deflation eased. Extensive January sales was good news for bargain hunters, with non-food products showing significant discounts, particularly for furniture and fashion, but less good news for retailers needing to shift excess stock.
"This month’s figures also showed early signs of what is to come, with MoM food prices rising at their fastest pace since April last year."
Mike Watkins, head of retailer and business insight, NielsenIQ, adds: “Shoppers continue to be unsure about spending and many are seeing a continued squeeze on their household incomes. So we expect non-food retailers to still promote and food retailers to still offer price cuts over the next few weeks, with shoppers managing their budgets by shopping smart and shopping around for wherever the savings are the most attractive.”
