Deflation in clothing and footwear increased to 1.2% in July from 0.1% in June driven by strong promotional activity, according to the BRC-Nielsen Shop Price Index.
The report found that non-food inflation in July was the lowest since November 2009, slowing to 1% compared to 1.4% in June. Overall shop price inflation remained unchanged at 1.5% in July.
The report said kidswear “excerted considerable downward pressure” dropping to its lowest rate since December 2009, driven by earlier promotions on back-to-school items.Women’s and men’s clothing reported annual deflation this month as a result of “aggressive discounting”.
Stephen Robertson, British Retail Consortium director general, said: “Shop price inflation remained low and well below other measures of inflation as a slowdown in non-food prices compensated for an increase in food inflation.
“The overall figure remained the same as June and is half the rate of the official Consumer Price Index. It’s clear the high street is the not the main source of inflation.”