UK sees fastest price drop in two years

The British Retail Consortium says huge discounting by the supermarkets coupled with the cut in VAT rates has brought non-food prices down “dramatically”. It says such measures have contributed to the fastest fall in non-food prices in two years.

Non-food discounting, which saw the likes of M&S and Debenhams stage pre-Christmas one day sales triggered a year on year price drop of 2.4%. Non-food sector prices were the only ones to fall year on year, but price inflation was down compared with November’s figures across the board.

Overall shop prices grew much less in December – 0.5% year on year from 2007 -2.2% lower than November’s increase. Food inflation was down to 6.2% – compared with a rise of 7.1% in November – its lowest level since last May.

BRC director general Stephen Robertson has urged the Government to help ease the sector’s profit-squeeze by reducing business rates.

Latest from Marketing Week


Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now


Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.


From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.


Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email

If you are looking for our Jobs site, please click here