BRC and NIQ report that shop price inflation was unchanged at 1.2% YoY in June, against growth of 1.2% in May. This was above the 3-month average of 1.1%. Non-food inflation increased to 0.6%, against growth of 0.5% in May.
Helen Dickinson, chief executive of the BRC, says: “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.
"In clothing and general merchandise, retailers responded to the hot weather with promotions across summer essentials in clothing, footwear and lighter household textiles, despite overall non-food inflation rising."
Mike Watkins, head of retailer and business insight, NIQ, adds: “Food inflation remains lower than a year helped by price reductions and higher levels of promotion. 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.”
