Overall shop prices fell by 0.1% for the second month in a row in July, as stiff competition between retailers drove down non-food prices and food price inflation eased, in part due to a fall in global food prices.
Data from the BRC-Nielsen Shop Price Index shows non-food price were down 1.2%, the same as the previous month.
Meanwhile, food inflation fell slightly from 1.8% to 1.7%. Fresh food inflation eased in July to 1.2% from 1.4% in June, while ambient food inflation edged up from 2.3% to 2.4%.
Helen Dickinson Chief Executive of British Retail Consortium, commented: “While we expect food inflation to remain steady over the next few months as retailers work hard to keep prices low, this will depend on whether the UK can navigate an agreement with the EU to ensure frictionless tariff-free trade continues after October 31st.”
Mike Watkins, Head of Retailer and Business Insight at Nielsen, added: “With so much economic uncertainty, it’s good news for shoppers that there was no pressure coming from shop price inflation during July.
“Looking ahead for the next few months, we anticipate broadly stable food inflation and non-food retailers looking to keep any price increase to a minimum, as shoppers continue to be cautious around their retail spend.”
