The BRC's Shop Price Index indicates that prices on the high street decreased by 1.43 per cent during January, compared with December 2002. Although the yearly trend show that prices remained static in January 2003 when compared to prices in January of the previous year.
The January sales saw shop prices fall by 1.43 per cent over the month and in a break from the norm, the result of some supermarkets holding sales this year, was a decrease in the price of food by 0.1 per cent in January. However, compared to a year ago the cost of food was up 0.62 per cent.
The BRC's director general, Bill Moyes said: 'If the figures mark the trend for 2003, then the government and the bank of England need to be very concerned about shop price deflation. Slowing demand and ever tightening margins mean that the retail sector's ability to create jobs and drive the economy is under threat. The government needs to tackle the costs it is piling onto business and the bank of England needs to stimulate demand. If action is not taken, we could face a perilous time for not only retail but the British economy as a whole.'