Shop prices fall for first time in nearly three years

Published On Aug 27, 2024, 2:34 AM

Research indicates that summer sales have led to the first annual drop in shop prices in nearly three years, with prices for non-food goods like clothing and furniture decreasing by 1.5% in August. This discounting trend follows poor summer weather and ongoing cost-of-living challenges affecting sales. Food prices increased by 2%, but at a slower rate than prior months. Industry leaders warn that the economic recovery is fragile, with potential for renewed inflationary pressures due to climate change and geopolitical tensions. The Bank of England has recently cut interest rates amid a slow inflation trend but remains cautious about further alterations due to uncertain economic conditions.