Retailers keen to shift summer stock in July mean there was a more significant dip in comparison to June
UK store prices fell more sharply in July than in June, due partly to bigger discounts on clothes, the British Retail Consortium (BRC) said.
Store prices last month fell 1.4% compared with a 1.3% dip in June.
“Clothing retailers were keen to shift their summer stock with widespread discounts clearly part of their strategy,” BRC director general Helen Dickinson said, pointing to a year-on-year fall of 4.9%.
The consumer prices index showed its first year-on-year fall in prices in over 50 years in April, and stood at zero in June, but few analysts see a risk of entrenched deflation.
The Bank of England is due to publish new forecasts for growth and inflation on Thursday.
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