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Clothing deflation slows

Clothing deflation has slowed to 8.9% during September compared with the same month last year.

On a month-on-month basis clothing prices increased for the first time since March, up 0.3% after a 0.5% fall in August, according to the British Retail Consortium Shop Price Index.

Footwear and womenswear were the main categories to see upward pressure on prices, which outweighed accelerating deflation in menswear, kidswear and babywear.

The BRC said retailers will be keeping a close eye on the recent rise in cotton prices, currently up 16% on a year ago, as if they continue to increase, inflationary pressure will filter through to prices in the long term.

Across the retail sector overall shop prices reported annual deflation for the fifth consecutive month in September, slowing to 0.2% from the 0.5% decline reported in August.

Helen Dickinson, BRC director general, said: “Retailers have used deep discounts and promotions particularly in men’s and children’s clothing.  This is further evidence of the continuing pressure on margins across the sector.”

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