Furniture and Floorcoverings prices rose by 3.6% in August on last month, although deflation accelerated to 2% compared to last year.
According to latest BRC–Nielsen Shop Price Index, furniture and floorcovering prices accelerated to 2% from 0.8% in July, with downward pressures exerted by the Furniture, Furnishings and Carpets category, which reported a sharp acceleration in its deflation rate.
On a month-to-month basis, prices increased in August from the 1.9% fall in July. This is the highest deflation rate since August 2015, 4.8%, and follows a similar pattern to the previous August, when prices rose by 3.3% in 2014.
Total non-food deflation accelerated to 2.5% in August from 2.2% in July, whilst overall shop prices reported deflation of 2% from the 1.6% decline in July.
Helen Dickinson OBE, chief executive, British Retail Consortium, said: “Shop prices continued their record run in deflationary territory. The devaluation of sterling in wake of the referendum will put upward pressure on shop prices. But that’s likely to take several months to properly feed through, given that retailers won’t feel the brunt of the cost increases until existing contracts with foreign suppliers come to an end.”