According to an industry group, British retailers have seen the biggest annual decline in prices since 2006. In June prices across products such as furniture, cloths, electronic good and even supermarkets have seen large price reductions.
It is reported by The British Retail Consortium that prices have fallen by 1.8% in the last month when compared to the same month a year earlier. This is the biggest price fall since the survey has begun.
The only sector that was higher was food, with a 0.6% price increase, non food prices had fallen by 3.4% which is another record.
The driving factor is said to be the high competition between retailers and supermarkets. Food inflation levels are at a record low, which means its not costing as much to import food helping to keep relative costs down. The supermarkets are leading a price war with many of the competition trying to gain large percentage shares within this market sector. Tesco has reported its largest drop in quarterly sales in over 40 years, leading to further speculation over more aggressive price cuts.
Consumer inflation has also fallen to a four and a half year low, to just 1.5% in May. Consumer inflation is the measure of the cost of consumable products across a selection of items. The Bank of England is forecasting that inflation should be near 2% over the next two to three years.
The main benefactor is the British public as they are really seeing the benefits of low cost consumables.
YourVirtualOfficeLondon.co.uk is also helping to keep inflation down, we have a price freeze with all current online services. If you need any help or assistance do get in contact with us today. If you found this blog interesting, you can read our latest blog posts here.