Shop price inflation continues to fall

Discounts on big-screen TVs ahead of Euro 2024 helped to slow price rises in UK shops in June, new figures show.

Shop prices increased by just 0.2% in the year to June, down from 0.6% in May and the lowest level since October 2021, according to the data from the British Retail Consortium (BRC) and research firm NielsenIQ.

“During the height of the cost of living crisis, retailers invested heavily in improving their operations and supply chains to compensate for the impact of global shocks on input costs,” said Helen Dickinson, chief executive of the BRC. “This is clearly paying off, with shop prices having risen just 0.2% over the past 12 months.”

Falling prices for key products such as butter and coffee contributed to the 14th consecutive deceleration in food prices. Annual food inflation slowed to 2.5% in the year to June, compared with 3.2% in May, dropping to the lowest level since December 2021.

Meanwhile, non-food prices fell by 1%, following an annual decline of 0.8% in May.

Mike Watkins, head of Retailer and Business Insight at NielsenIQ, said that with uncertainty around discretionary spending, intense competition is expected to keep price increases low this summer.