UK shop prices fall as more retail deflation forecast

Shop prices in Britain fell in December for the 32nd consecutive month, the British Retail Consortium said yesterday, the latest sign that UK inflation is likely to remain tame.

The BRC said prices in British shops eased by 2% over the 12 months to December, compared with a 2.1% fall in November that was jointly the steepest on record.

Non-food prices fell 3% year-on-year in December, a slightly smaller decline than November’s, as clothing and footwear prices continued to slip.