Shop prices in the UK dropped in February at their sharpest rate since the Office for National Statistics began its records in 1997.
Average prices were down 3.6% when compared to February 2014. The drop was ascribed to the steep decline in petrol prices.
At the same time, the volume of retail sales jumped up by 0.7%, making February the 23rd month in a row of growth. This took analysts by surprise as they had been predicting lower growth.
Growth was experienced across much of the retail sector, and not limited to just food or clothing.
The healthy news for the economy in the first quarter of 2015 comes after significant growth in the last three months of 2014, leading observers to note that there is sufficient confidence in the UK’s economic recovery to warrant spending.
“The outlook ahead is looking bright, with household incomes buoyed by zero inflation and improving pay packets, which will continue to encourage spending," said the CBI’s Director for Economics.
Its survey of 126 firms showed sales volumes grew solidly in the year to March, with most retailers optimistic of further sales growth.
