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Clothing deflation at highest rate since 2006

Clothing and footwear deflation accelerated to 10.7% in October, the highest rate since 2006, according to the British Retail Consortium’s Shop Price Index.

The figures, produced by the British Retail Consortium and data company Nielsen, show that deflation has returned to levels not seen since December 2006.

Month on month, deflation increased to 10.7% in October, up from 8.9% in September, with prices falling 1.5%, after a 0.3% rise in September.

Prices have fallen for the last seven months of the year.

The sectors hit most significantly were accessories, womenswear and childrenswear, although footwear and menswear also reported accelerating deflation.

Helen Dickinson, director general at the British Retail Consortium, said that the figures were “Mainly driven by promotions on clothing.”

It follows the warmer weather in October which caused autumn collections to be slow on the uptake by consumers.

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