Shop prices continued to fall in June
UK shop prices dropped by 2% in June, deepening from the 1.8% decline in May. The drop marks the 38th consecutive month of falling prices.
The figures from the British Retail Consortium and Nielsen in their monthly shop price index show that non-food deflation fell to 2.8% in June from 2.7% in May.
Meanwhile, food deflation deepened further in June, falling to 0.8% from 0.3% in May.
Helen Dickinson, chief executive of the British Retail Consortium, said: “This extraordinary 38 month run of deflation has undoubtedly been good for consumers. While it has been driven largely by falling prices for non-food items we have, from time-to-time, seen food in deflationary territory as well – which provides the real boon for household budgets. June was one of those months with food prices falling by 0.8%, the deepest deflation in food for over a year.”
Fresh food reported a further acceleration in its deflation rate, falling to 1.5% from 0.8% in May. This was the deepest deflation rate since September 2015. Ambient food inflation decelerated to 0.1% in June from 0.4% in May
