Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Deflation returns to clothing and footwear in May

Clothing and footwear saw deflation of 0.7% in May, only a month after the sector recorded inflation of the same amount.

The deflation in the sector during May marked a 0.4% drop from last month’s figure, according to the British Retail Consortium-Nielsen Shop Price Index.

The report said that the drop was caused by annual deflation in womenswear and kidswear, both of which saw inflation in April. Downward pressure continued from the footwear sector which was deflationary in April.

However, the BRC warned that this rate of deflation may not be sustained throughout the year. The report said cotton prices were currently up 40% year on year, which was likely to squeeze retailers’ margins further this year.

In the non-food retail sector as a whole, monthly inflation slowed to 1.6% year-on-year, compared with the 2% year-on-year rise seen in April.

Stephen Robertson, director general of the BRC, said: “Clothes and electricals are cheaper than they were last year, as retailers hold prices down in the face of customers’ reluctance to spend. With margins already being squeezed, a VAT increase would be an inflationary pressure too far.”

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.