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Overall UK shop price inflation remained unchanged at 1.2% year on year in June, matching the figure recorded in May, according to the latest British Retail Consortium (BRC)-NIQ index.
Non-food inflation rose to 0.6% year on year in June compared to 0.5% in May, pushed ahead of its three-month average of 0.3%.
Conversely, overall food inflation slowed to 2.4% year on year, down from 2.7% in May and falling below its three-month average of 2.7%. The drop was driven by fresh food inflation, which eased to 2.8% from 3.4% the previous month. Ambient food inflation rose to 1.9% from 1.6% in May, aligning with its three-month average.
On a month-on-month basis, overall shop prices increased by 0.4% in June, with food prices rising by 0.5% and non-food lines by 0.3%.
Helen Dickinson, chief executive of the BRC, said: “Overall shop price inflation was unchanged in June. Food price growth eased, and as shoppers made the most of the sunshine, retailers helped keep the prices of summer treats such as strawberries and ice cream low thanks to bumper crops and strong competition. In clothing and general merchandise, retailers responded to the hot weather with promotions across summer essentials in clothing, footwear and lighter household textiles, despite overall non-food inflation rising.
“While a competitive market is keeping inflation in check for now, retailers face mounting cost pressures, including higher National Insurance, the triple packaging tax and higher input costs from extreme weather and geopolitical tensions. To support the cost of living for households, government must reduce the costs of business. Starting with cutting the taxes and levies on energy bills would ease pressure on retailers and help keep prices down for customers.”
Mike Watkins, head of retailer and business insight at NIQ, added: “Food inflation remains lower than a year ago helped by price reductions and higher levels of promotion. There was also some downward pressure on prices in non-food seasonal products such as gardening and DIY, all of which will help shoppers as they manage their household budgets. With the potential for increased demand during the summer of sport, retailers will be looking to keep prices as low as possible for as long as possible.”
