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Clothing deflation spikes at 6.7%

Clothing deflation increased to 6.7% in June compared with the same month in 2012, as a result of widespread promotions and discounting.

Clothing and footwear saw the sharpest acceleration in deflation of any category, pushing the British Retail Consortium’s Shop Price Index to -0.2% - its deepest levels of deflation since 2007. This is despite growth in the food categories. Overall, non-food deflation accelerated to 1.9%, from 1.5% in May.

The BRC said kidswear and menswear saw a spike in rates of deflation, noting that womenswear and accessories “also remained at an elevated level”.

The association explained: “Promotions and discounts continue to be widespread in this category as retailers attempt to entice customers into shops.”

It is the second month in a row that clothing and footwear have seen high levels of deflation. In May, the category saw an acceleration of 5.2%, although electricals were worse off, recording deflation of 5.7%.

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