The British Retail Consortium (BRC) reported a continued decrease in clothing and footwear prices in July, marking the seventh consecutive month of decline.
- Shop price annual inflation remained unchanged at 0.2% in July, a rate not seen since October 2021.
- Non-food prices saw deflation at -0.9% for July, slightly up from June’s -1%.
- The ongoing decline in prices is attributed to persistent weak demand, providing holidaymakers opportunities for bargains.
- Despite improvements, potential inflationary pressures remain due to geopolitical tensions and climate challenges.
Clothing and footwear prices have fallen once again in July, as revealed by the British Retail Consortium. This marks the seventh consecutive month where consumers have benefited from lower prices in this sector.
In July, the shop price annual inflation held steady at 0.2%, maintaining the lowest rate since October 2021. This stability suggests a respite from the high inflation rates that troubled UK households during 2022 and 2023.
The deflation in non-food prices continued at -0.9% in July, which shows a slight increase from June’s -1%. This ongoing deflation reflects a trend that enables consumers to purchase non-food items at reduced costs.
Helen Dickinson, chief executive of the British Retail Consortium, noted that the decline in prices for clothing and footwear is primarily due to ‘persistent weak demand’. She highlighted that holidaymakers could take advantage of this trend by securing summer clothing and literature at bargain prices.
However, she also cautioned that while the inflation levels have returned to normal earlier this year, the outlook for commodity prices remains uncertain. The influence of climate change on domestic and global harvests, alongside rising geopolitical tensions, could lead to renewed inflationary pressures.
The continued drop in clothing and footwear prices highlights both current economic relief and potential future challenges.
