Shoppers’ perceptions of the changing price tag of products over time is way off the mark, according to research by PricewaterhouseCoopers.
In its study of how prices of common products have changed since 1992, it found that while customers largely agreed with a “rip-off Britain” way of thinking, there was in fact wide-scale price deflation across the categories. A study of Tesco’s Value range revealed a 12% price reduction, while a study of 400 lines in Argos and Next catalogues showed general merchandise had fallen 21% and clothing 20%. “Price deflation is continuing to accelerate,” said Mark Hudson of PWC. “Whereas it took 17 years for a video recorder to reach 20% of its entry-level price point, it has taken the 42in plasma TV just 18 months.”