Shop price inflation unchanged in July
The BRC-Nielsen Shop Price Index for July reveals the lowest non-food inflation since November 2009.
Overall shop price inflation remained unchanged at 1.5% in July, food inflation increased to 2.5% in July from 1.7% in June and non-food inflation slowed to 1.0% in July from 1.4% in June
Stephen Robertson, British Retail Consortium Director General, said: “Good news for customers. Shop price inflation remained low and well below other measures of inflation as a slowdown in non-food prices compensated for an increase in food inflation.
“The overall figure remained the same as June and is half the rate of the official Consumer Price Index. It’s clear the high street is the not the main source of inflation.
“Shop prices have remained stable largely due to aggressive discounting driving non-food inflation down to its lowest rate since November 2009. The price of furniture and flooring fell for the first time in seven months.
“Food inflation was higher than the previous month – driven by global factors putting pressure on the cost of fresh food, such as meat and fruit. The recent dry weather has increased the price of animal feed and poor harvests have reduced some fruit crops. Problems with production in large wheat exporting countries, such as Russia and Canada, could put pressure on overall food inflation in the coming months.”
