Deflation hits the shops

The countryside surrounding Harting Down in the South Downs National Park, in West Sussex.

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SHOPPERS saw the deepest level of deflation for eight years last month as retailers continue to discount groceries, clothes and electrical goods.

Prices fell for the 15th month in a row to hit 1.9 per cent in July from 1.8 per cent a month earlier, according to the British Retail Consortium/Nielsen shop price index.

The survey’s authors said this was the deepest level of deflation since they began collecting this data in December 2006.