Shop prices fall at fastest rate since 2006: new figures
Shop prices in June fell at their fastest rate in eight years amid fierce competition in the supermarket sector to attract shoppers.
Figures released by the British Retail Consortium and Nielsen show that shop prices dropped 1.8% year-on-year in June to mark the fourteenth consecutive month of deflation. This was the biggest annual fall since the BRC began its survey in December 2006.
Food inflation fell to 0.6% in June – the lowest level ever recorded by the BRC. Meanwhile, non-food reported an acceleration in deflation of 3.4% in June from 2.8% in May, which was also the lowest ever level recorded.
BRC director general Helen Dickinson said: “Fierce competition among grocers has driven food price inflation to record low levels and with some grocers having announced plans to keep prices down, consumers stand to benefit for a while to come. While sports fans are doing well this summer with great deals to be found in clothing, footwear and electricals.”
Mike Watkins, head of retailer and business insight at Nielsen, added: “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. 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.“
