07/10/2009 - Luxury goods costs continue to fall
The Director of the British Retail Consortium (BRC) has said there is good news for shoppers as the cost of luxury goods has decreased for the 10th month in a row.
BRC Director General Stephen Robertson said the figures included items such as furniture, electrical goods and clothes which were deflationary again last month. He said: "Prices for non-food goods have been deflationary for 10 consecutive months now with clothing, electricals and furniture showing the biggest falls as retailers discount to generate sales."
Retailers have also revealed that for the second consecutive month, shop prices in September were lower than the same period last year. Deflation on non-food products remained at 1.4% in September, but the Consortium said this is likely to slow until the cut in VAT is removed in January.
The exception was annual inflation of the cost of health and beauty products, which rose to a record high of 3.3%.
Food inflation rose from 2.3% in August to 2.5%, but this was down to an increase in the cost of tinned and packet food, the BRC said. Since March, food inflation has fallen from 9% to the current rate.
Copyright © Press Association 2009
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