Shop prices fall for 13th consecutive month in May
Shop prices fell by 1.4% year-on-year in May to mark the thirteenth consecutive month of deflation. This meant the rate remained unchanged from April.
The figures released by the British Retail Consortium and Nielsen in their Shop Price Index show that food inflation in May was also the same as in the previous month at 0.7%.
Non-food reported annual accelerated deflation of 2.8% in May from 2.7% in April.
BRC director general Helen Dickinson said: “We’ve past the fourteenth consecutive month of non-food deflation, mainly as the result of good bargains in categories popular with consumers in summer months such as clothing and footwear. Value was also a mainstay across the gardening and DIY categories, as retailers competed to cater for strong demand over the May Bank Holiday.
“Food inflation remaining at its lowest level since our records began is great news for hard-pressed households as the summer approaches, and confirms that retailers are responding to current conditions by matching attractive offers with those products most in demand at this time of the year.
“With the World Cup fast approaching I would expect retailers to continue to keep prices down for the foreseeable future”.
Mike Watkins, head of retailer and business insight at Nielsen, said: “Food inflation is still low, many supermarkets are price cutting and non-food prices remain deflationary, so the high street continues to generate little inflationary pressure. Little in the way of immediate seasonal or weather related price increases is anticipated so the outlook for the next three months is for relatively stable shop price inflation. Helped by the increases in consumer confidence since the start of the year, this should encourage shoppers to spend more freely over the summer months “
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