Shop price inflation falls to 1.7%
By myfinances.co.uk staff
Shop price inflation dropped to 1.7 per cent in February as upward pressure on the cost of food fell to its lowest level for three years, according to new figures from Nielsen and the British Retail Consortium (BRC).
Stephen Robertson, director-general of the BRC, said the decline in food inflation - which slid from 2.9 per cent in January to 1.3 per cent last month - was down to falling prices for fresh produce, particularly vegetables and fish.
In February 2009, the rate of inflation for the cost of food was seven times higher, he added.
"This is great news for customers," Mr Robertson commented.
Non-food price inflation was unchanged last month at 1.9 per cent.
Mr Robertson said that despite VAT returning to 17.5% at the start of the year, "fierce retail competition" means electrical goods, clothing and home entertainment products are actually cheaper than they were in February 2009.
Recent figures from the Confederation of British Industry showed high street spending was stronger than expected in the first half of last month, with 46% of retailers reporting an increase in business, compared to 23% who said sales had declined.
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