The prices of non-food items fell 0.55 percent in December, compared to November's increase of 1.22 percent, which was the largest month-on-month rise since October 2003. The annual inflation rate for non-food items remained negative, edging up to -1.41 percent, showing that prices remain lower than a year ago. The non-food index now stands at 93.42.
Christmas promotions on toiletries, toys, electrical equipment, CD's and DVD's were the main contributors to the fall in prices of non-food items. There was also evidence of sales within clothing, with discounts of up to 75 percent.
However, with many retailers keeping stock levels lower than last year, there was often less discounting, with non-food prices this December 1.41 percent lower than a year ago, less than the 2.3 percent fall last December.
Sales promotions within the DIY sector were quite productive, especially on bathrooms and kitchens, where heavy discounting was evident.
Despite less discounting in December compared to December 2004, non-food items remain cheaper than in previous years, with the index showing they are 4.1 percent lower than two years ago.
BRC is the lead trade association representing the whole range of retailers, from the large multiples and department stores through to independents, selling a wide selection of products through centre of town, out of town, rural and virtual stores.
SPI aims to give a picture of the inflation faced by shoppers on the most commonly bought items.
The British Retail Consortium
marketing@alchempro.com
