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Clothing and footwear prices fall 9.7% in December

Clothing and footwear prices declined by 9.7% in December as overall shop prices tumbled by 1.7%, the 20th consecutive month of deflation.

On a month-on-month basis clothing and footwear prices fell 0.2% in December after a flat month in November, according to the British Retail Consortium-Nielsen Shop Price Index.

Over the year, clothing and footwear prices fell 10.9% on average.

BRC director general Helen Dickinson said: “This is the 20th consecutive month that customers have been able to go to the shops, fill their baskets and pay less for their goods than the year before.

“This is an incredible run of good fortune for consumers and in the medium term at least looks set to continue. A number of key commodities in the retail supply chain (in particular, oil) have fallen dramatically recently and the impact of these falls will continue to make its way through to shop prices for some time to come.

“This significant run of deflation isn’t all bad news for retailers. The Producers Price Index (which tracks the cost of raw materials to producers) is deflationary, so retail businesses have seen significant decreases in their own input costs.

“However, fierce competition – the hallmark of the UK retail industry – has seen these savings passed on directly to consumers. It’s a win-win scenario that many are predicting will continue long into 2015.”

Readers' comments (2)

  • It's also a sign of commoditisation and value being removed from the market. Less profits means less investment?

    Are consumers really better off? For example, buying via Amazon (and others) who avoid paying tax, means the treasury has less. Taxes pay for NHS, education, and so on. Not sure it's as rosy as BRC suggests.

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  • It won't seem very rosy when retailers cut staff to make ends meet because people want a bargain! Then there will be less people with jobs, less money being spent, and less tax and NI in the coffers. A lose lose situation I would say!

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