Overall shop prices in June fell for the first time since October 2018 as high street retailers discounted goods to tempt cautious shoppers to spend and food inflation remained steady.
The BRC-Nielsen Shop Price Index shows prices slipped 0.1% last month, driven down by the non-food retail sector where prices fell 1.2%.
Food inflation held steady at 1.8%. Fresh food inflation eased in June to 1.4% from 1.5% in May, while ambient food inflation edged up from 2.1% to 2.3%.
Helen Dickinson, Chief Executive of the British Retail Consortium, suggested that whilst the overall fall in prices was small, it would provide a welcome break for consumers after several months of inflation.
“It is also a sign of the fierce competition between retailers, which has long kept prices low for British consumers,” she added. “However, a no deal Brexit would hinder retailers’ abilities to continue to contain prices, as checks and delays would raise the cost of doing business.”
Mike Watkins, Head of Retailer and Business Insight at Nielsen, commented: “Food inflation is broadly stable, and this looks set to continue over the summer with many supermarkets reducing prices, helping to offset some of the cost increases coming through the supply chain. This is helping shoppers make further savings on household bills as well as providing a much-needed boost to sales.
“On the non-food high street, retailers are maintaining the level and depth of price cuts, to help drive footfall following dampened demand due to the weather and wavering retail spending.”
