FXstreet.com (Barcelona) - Shop prices have posted a sharp deceleration in the UK in December from the previous month, reflecting important discount on High Street as well as the VAT reduction, according to data released by the British Retail Consortium.

Year on year, shop prices index have increased a mere 0.5% in December, down from the 2.7% year on year rise posted in November. Food prices, however, have increased 6.2% year on year offsetting the 2.4% yearly decrease in non-food prices.

Month on month, shop prices have declined 2.0%, with food prices 0.7% lower than the month before, and non-food prices 2.7% below the level posted last month.