UK shop prices registered sharpest decline in over a year in August

Omkar Godbole FXStreet Contributor

Shop prices in the United Kingdom (UK) fell by 0.4% in August, marking the fastest rate of decline since June 2018, the BRC-Nielsen Shop Price Index (SPI) released earlier today showed.

August's deflation is below the 12- and 6-month average price increases, both of 0.3%.

The British Retail Consortium (BRC) has associated the 0.4% drop in prices with weak spending and competition in the face of Brexit uncertainty.

Helen Dickinson, chief executive of the British Retail Consortium, said:

Consumers were the real winners this month as prices fell at their fastest rate in over a year. Prices of non-food goods fell at a faster rate than both the previous month and the 12-month average, while food inflation eased slightly due to higher levels of discounting from supermarkets.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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