British shop price decline steepens in February - BRC

LONDON, March 4 - Prices in British shops fell at a faster pace in February as tough competition drove down clothing and furniture costs, while food prices fell for a second month in a row, an industry body said on Wednesday. The British Retail Consortium said shop prices in February fell 1.7 percent compared with a 1.3 percent decline in January. Food prices dropped by 0.4 percent, the pace of decline easing slightly from 0.5 percent in January. "Since the start of the year, we have seen some very competitive pricing across both the food and non-food channels and this is helping to keep prices low for shoppers," said Mike Watkins of data company Nielsen, which compiles the survey. Last month Bank of England Governor Mark Carney said he expected Britain's broader official measure of consumer price inflation would soon dip into negative territory for the first time too. Sharp falls in the price of oil and other commodities have lowered the wholesale prices paid by retailers, and come as Britain's major supermarkets are trying to fend off a challenge from German discounters Aldi and Lidl. (Reporting by Andy Bruce; Editing by Susan Fenton)