Shop price inflation holds steady at 1.2% in June
Shop price inflation has remained unchanged from May, holding at 1.2% year-on-year in June, as consumers benefited from summer discounting by retailers.
According to the British Retail Consortium’s Shop Price Index, food inflation fell to 2.4%, following 2.7% growth in May, as fresh food inflation decreased to 2.8% against May’s growth of 3.4%. Meanwhile, ambient food inflation rose to 1.9%, following an increase of 1.6% in May.
Subscribe to TRBHelen 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.”
However, non-food inflation edged up to 0.6%, against growth of 0.5% in May, as retailers offered promotions on summer essentials in clothing, footwear and lighter household textiles.
Mike Watkins, head of retailer and business insight at NIQ, said: “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.”
Looking ahead, Dickinson noted that although a competitive market is keeping inflation in check for now, retailers are facing mounting costs from higher National Insurance, the new packaging tax, and rising input costs driven by extreme weather and geopolitical tensions.
She added: “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.”
