Shop price inflation falls to 8.4% in June
Non-food inflation fell slightly to 5.4% in June, down from 5.8% in May, which was below the 3-month average rate of 5.6%
Shop price inflation in the UK has fallen to 8.4% in June, down from 9% in May, according to new data from the British Retail Consortium.
The inflation figure for June is also below the three month rolling average of 8.7%.
The fall in inflation was led by a decrease in food inflation which fell to 14.6% in June, down from 15.4% in May.
This is below the 3-month average rate of 15.2% and is the second consecutive deceleration in the food category.
Fresh food inflation also slowed in June, to 15.7%, down from 17.2% in May and below the 3-month average of 16.8%.
Ambient Food inflation dropped slightly to 13.0% in June, down from 13.1% in May but remained in line with the 3-month average at 13.0%.
Lastly, Non-food inflation fell slightly to 5.4% in June, down from 5.8% in May, which was below the 3-month average rate of 5.6%.
Helen Dickinson, OBE, BRC CEO, said: “Households up and down the country will welcome the easing of shop price inflation in June. Food inflation slowed for the second consecutive month, particularly for fresh products, as retailers cut the price of many staples including milk, cheese and eggs. Clothing and electrical goods also saw falling prices, helping customers to pick up a bargain ahead of the summer holidays.
“If the current situation continues, food inflation should drop to single digits later this year. However, it is imperative that the Government does not hamper this progress by introducing costly new policies. Reforms to the packaging Levy (Extended Producer Responsibility) and a new deposit return scheme, could create an additional £4bn burden on retailers and their customers.”
Mike Watkins, head of Retailer and Business Insight, NielsenIQ, added: “Whilst prices are still higher than a year ago, the slowdown in food inflation is welcome news for shoppers, helped by supermarkets lowering prices of some staple goods. And if global supply chain costs continue to fall, we may now be past the peak of price increases.
“However, with most households needing to save money, purchasing behaviour for the rest of this year is still likely to shift towards essential needs with discretionary consumption being deprioritised or delayed.”
