UK shop prices fall at fastest pace since 2006, BRC says

Shoppers on Oxford Street Shop prices have now fallen for 14 months in a row, according to the BRC

Shop prices in June fell at the fastest annual rate since at least 2006 as retailers fought to attract customers, the British Retail Consortium (BRC) has said.

Prices were 1.8% lower in June compared with a year earlier, the BRC said.

It is the biggest annual fall in prices since the BRC's survey began in December 2006 and the 14th month in a row that prices have decreased.

The price of electrical goods and clothing both fell.

Prices for non-food items were 3.4% lower in June compared with a year ago, while the rise in the cost of food slowed to 0.6% - its lowest pace since the series began.

The BRC survey does not include online retailers or costs such as energy, transport and housing, which feed into the broader official consumer price inflation (CPI) measure targeted by the Bank of England.

Competition among retailers for market share is driving the record fall in prices, the BRC said.

"Fierce competition among grocers has driven food price inflation to record low levels and with some grocers having announced plans to keep prices down, consumers stand to benefit for a while to come," said BRC director-general Helen Dickinson.

CPI inflation fell to a four-and-a-half year low of 1.5% in May, helped by the sharpest fall in food and non-alcoholic beverage prices for a decade.

More on This Story

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

BBC Business Live

  1.  
    MARKETS 09:20: BBC Radio 4

    An interesting nugget from BlackRock's investment boss Ewen Cameron Watt. He told Today the markets' current complacency will melt in the face of higher interest rates that everyone expects are on their way. He gives some striking figures: "A 1% rise in [UK] mortgage rates will add £800-900 to the average mortgage bill." And put a serious crimp in spending power.

     
  2.  
    MARKETS UPDATE 09:05:

    Europe's share markets have all opened modestly higher. The best gainer in the UK is Weir Group, which is up 3%. And the pound has fallen 0.25% against both the dollar and the euro. It is at $1.6568 and 1.2621 euros.

    • The FTSE 100 is up 20 at 6845
    • the Dax in Frankfurt is 68 higher at 9547
    • Paris's Cac 40 is 13 points higher at 4393
     
  3.  
    SWISS ECONOMY 08:50:
    Big cheese

    No growth in Switzerland, reports the State Secretariat for Economics. A surprise: GDP was forecast to growth by about half a percent in the second quarter. Weaker exports and falling construction spending were the culprits. Yearly GDP growth was 0.6% - way under hopes of 1.7% growth. We will endeavour to find an even more fatuous picture before we pack up for the day. Might be hard.

     
  4.  
    CHINA PROPERTY 08:34: Via Blog Linda Yueh Chief business correspondent

    The various steps that China is taking to stem house price rises seems to be working, but can the government manage an orderly slowdown in the property sector? Linda Yueh finds out here.

     
  5.  
    BORIS ISLAND 08:19: Radio 5 live
    boris island

    Aviation expert David Bentley told Wake up to Money about one of the three remaining airport expansion options - that to expand Heathrow as a "hub", he says. A hub can mean base for airlines, or a major airport to change plane, as in a "hub and spoke system," he says. Whatever is decided, it will need to satisfy air travellers for the next 20 years or so, he adds.

     
  6.  
    AUSTRALIA BANK RATE 08:03:

    Australia's central bank kept its interest rate at a record low of 2.5% for a 12th consecutive policy meeting. The economy is growing sluggishly, initial data suggest.

     
  7.  
    BORIS ISLAND Adam Parsons Business Correspondent

    tweets: Davies says Boris Island project would be "reckless" and unlikely to appeal to government "of any political colour"

     
  8.  
    REDROW RESULTS 07:35:
    Redrow houses

    Redrow says a large number of its Help to Buy clients were first time buyers and over half were in the north of England. It says its order book is looking plump - up 85% on last year. Business Live has been debating Redrow's building style. Ease of upkeep of the wooden bits has excited debate.

     
  9.  
    REDROW RESULTS 07:21:

    Housebuilder Redrow's results are here. The usual tale of rising prices and the government's Help to Buy scheme. Redrow reports a 13% increase in the average selling price to £239,500, record group revenues and record pre-tax profits (almost doubling). Help To Buy provided 35% of private completions.

     
  10.  
    HEADLINES
  11.  
    BORIS ISLAND 07:07:

    Sir Howard Davis, chairman of the commission, said it had come down against Boris's island airport plan because: "The economic disruption would be huge and there are environmental hurdles which it may prove impossible, or very time-consuming to surmount." Even the least-ambitious version of the scheme would cost £70-90bn."

     
  12.  
    BORIS ISLAND 07:04:

    "The Airports Commission has today (2 September 2014) announced its decision not to add the inner Thames estuary airport proposal to its shortlist of options for providing new airport capacity by 2030. Following detailed further study into the feasibility of an inner Thames estuary airport the commission has concluded that the proposal has substantial disadvantages that collectively outweigh its potential benefits." A firm no, as expected.

     
  13.  
    MARKETS 06:56: BBC Radio 4

    BlackRock is the world's largest asset manager with more than $4.5 trillion under management. Its investment boss Ewen Cameron Watt, discussing why markets are so steady in the face of so much global tension tells Today: "Volatility is exceptionally low by historical standards and there's too much money chasing too few assets."

     
  14.  
    HSBC SHARES 06:42: Radio 5 live
    hsbc

    Ewen Cameron Watt, Chief Investment Strategist of the BlackRock Investment Institute, is now on 5 live talking about the news Neil Woodford, the fund manager, flogged his HSBC shares. "Neil bought HSBC because it was one of the few banks where he thought there was some dividend growth," he says. However, fines in the sector are likely to drain that prospect, he says. It's fines "more than anything that's sapping bank's willingness too lend, or ability to lend".

     
  15.  
    MARKETS 06:27: BBC Radio 4

    Today is looking at why stock markets are at a 52-week high when the political situation around the world is so dire - there's the threat of war in Europe and conflict in the key oil producer Iraq. Ewen Cameron Watt, chief investment strategist at Investment Institute of giant asset manager BlackRock says: "At this stage in the summer months the thought that Russia might affect sending gas to Europe is not a worry. [Energy stocks] are about 90% of capacity."

     
  16.  
    BANKING COMPLAINTS 06:12: Radio 5 live

    More from the Financial Ombudsman's Caroline Wayman. Fee-paying bank accounts are the cause of the increase in complaints about banking, she says. "People are getting in touch saying they didn't know they had a fee paying account or want one." People are "more aware but we see a lot of people who are reluctant to raise concerns," when coming forward to the service, she says. There are also more complaints about payday loans, but from a low starting point she says.

     
  17.  
    BANKING COMPLAINTS 06:02: Radio 5 live

    Caroline Wayman, chief executive of the Financial Ombudsman Service is on Wake Up to Money talking about complaints about banks. Complaints about payment protection insurance have fallen by almost a third, but complaints about other things in banking are up: "Still a lot of people get in touch, more than 1,000 people a day," she says. "We've had to expand a lot."

     
  18.  
    06:01: Howard Mustoe Business reporter

    Morning! Get in touch via email bizlivepage@bbc.co.uk or via twitter @BBCBusiness

     
  19.  
    06:00: Rebecca Marston Business reporter, BBC News

    Good morning and welcome to Tuesday's Business Live. Stick with us for the pick of the morning's news.

     

Features

  • Arsene Wenger, Diego Costa, Danny Welbeck Ins and outs

    Who will be satisfied and who left with regrets after transfer window? BBC Sport


  • Women doing ice bucket challengeChill factor

    How much has the Ice Bucket Challenge achieved?


  • Women in front of Windows XP posterUpgrade angst

    Readers share their experiences of replacing their operating system


  • Members of staff at James Stevenson Flags hold a Union Jack and Saltire flag UK minus Scotland

    Does the rest of the UK care if the Scots become independent?


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.