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Shop price inflation held at bay

Good news as headline figure of 0.1% decline driven by sharp drop in non-food costs

 

IN GOOD news for shoppers, the BRC-Nielsen Shop Price Index has revealed July saw 0.1 per cent deflation, in the second consecutive monthly fall since October 2018.

The index shows July’s headline inflation figure was driven by a sharp decline in non-food prices at 1.2 per cent down, keeping it below the 12 and six-month average price increases of 0.3 per cent and 0.4 per cent respectively.
Meanwhile, food inflation eased slightly to 1.7 per cent in July from 1.8 per cent in June, with fresh food inflation slowing to 1.2 per cent from 1.4 per cent the previous month.
“Shop prices fell by 0.1 per cent for the second month in a row,” BRC chief executive Helen Dickinson said, “many consumers will be pleased to see the price of non-food products continuing to fall at a steady rate, underlining the stiff competition between retailers that is driving down prices.
“Furthermore, food price inflation eased slightly, in part due to the fall in global food prices.
“While we expect food inflation to remain steady over the next few months as retailers work hard to keep prices low, this will depend on whether the UK can navigate an agreement with the EU to ensure frictionless tariff-free trade continues after October 31.”
Nielsen head of retailer insight Mike Watkins said: “With so much economic uncertainty, it’s good news for shoppers that there was no pressure coming from shop price inflation during July.
“Looking ahead for the next few months, we anticipate broadly stable food inflation and non-food retailers looking to keep any price increase to a minimum, as shoppers continue to be cautious around their retail spend.”



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