Clothing and footwear price deflation remained at 6.4% in January

Clothing and footwear price deflation remained at 6.4% in January

Driven largely by discounts and promotions in clothing and footwear, UK retail prices continued to fall in January. 

Clothing and footwear price deflation remained at 6.4% for the second consecutive month, making this the fifth month in a row that deflation has been in line with or above 6%, according to the monthly BRC-Nielsen Shop Price Index. 

By segment, downward pressure was exerted by children's clothing and accessories, both of which reported a sharp acceleration in their deflation rates. Baby wear fell back into deflationary territory after December's inflationary rise, outweighing slowing deflation in the women's and men's clothing categories.

On a month-on-month basis, clothing and footwear prices fell 2.1% in January after a 0.4% drop in December. 

Overall shop prices reported deflation of 1.8% in January from the 2% decline in December. 

"January marked the 33rd month of falling shop prices and the 34th month of non-food price drops. Non-food prices saw an impressive 3% drop for the second consecutive month, driven largely by reductions in clothing, footwear, books, DIY, stationery and home entertainment," said BRC director general Helen Dickinson. 

Mike Watkins, head of retailer and business insight at Nielsen, added: "Sales momentum in January has been slow for some retailers with shoppers seeking out the best prices online and in store, and this competition is helping keep non-food shop prices lower than a year ago."