Shoppers enjoy a bargain Christmas

Shoppers enjoyed lower prices in the pre-Christmas rush

Consumers enjoyed the cheapest prices in the shops in the run-up to Christmas for three years, new figures have revealed.

The British Retail Consortium (BRC) said prices during December were slightly lower than last year and more than 1% down on 1997.

"Customers continued to get outstanding value for money on the High Streets in the run-up to Christmas. Prices were lower this Christmas in comparison with the past three years," said BRC director general Bill Moyes.

He said shops had been able to offer competitive prices, even though stores were open for longer hours.

The figures came on the same day that the Confederation of British Industry (CBI) reported that sales on the High Streets had picked up last month, though by not enough to fuel a pre-Christmas bonanza.

The CBI survey showed that 49% of retailers reported a rise in sales, compared with a year ago, while 33% reported a fall.

Sparkling sales

Meanwhile the Anglo-American jewellery company Signet - which operates through H Samuel, Ernest Jones and Leslie Davis - became the latest retailer to report dazzling pre-Christmas sales.

Sales of gems in the UK were up 8.7% between 1 November and 24 December, compared with the same period last year.

Ernest Jones shops saw the best gains, with sales up 13.9% on the previous year.

The company sells 30% of its products in the UK and it said that this helped to counter the tougher trading conditions in its core market, the US.

The company's chief executive, Terry Burman, said that the performance of Signet's UK division during the festive period had been an "excellent achievement".