U.K. shop prices declined for the thirty-forth consecutive month in February, British Retail Consortium said Wednesday.
Shop prices declined 2 percent year-on-year in February, faster than January’s 1.8 percent fall.
Food prices returned to deflationary territory, falling 0.4 percent in February reversing a 0.1 percent rise in January. Meanwhile, non-food deflation remained at 3 percent for the third straight month.
“With consumer confidence falling back and wage growth remaining subdued, retailers continue to support their customers with prices and promotions to maintain market share in the tough trading environment,” BRC Chief Executive, Helen Dickinson OBE, said.
Mike Watkins, head of Retailer and Business Insight, Nielsen, said “Getting a larger share of the wallet of shoppers continues to a challenge for many food and non-food retailers and competition remains intense on the high street.”
With uncertain market conditions, offers and discounts are likely to continue for the time being, Watkins added.
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