Shop price annual inflation eased to 0.2% in June, down from 0.6% in May, the lowest rate of price growth since October 2021.
According to the BRC and NielsenIQ shop price index, this figure is below the 3-month average rate of 0.5%.
Non-food fell 1% in June, down from 0.8% in the preceding month. This is below the 3-month average rate of -0.8%.
Food inflation decelerated to 2.5% in June, down from 3.2% in May. This is below the 3-month average rate of 3.0% and is the fourteenth consecutive deceleration in the food category. Inflation is its lowest since December 2021.
Meanwhile, prices for fresh food slowed further in June to 1.5%, down from 2.0% in May, which is below the 3-month average rate of 1.9%.
Helen Dickinson, chief executive of the BRC, said: “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. This is clearly paying off, with shop prices having risen just 0.2% over the past 12 months.
“Whoever wins Thursday’s election will benefit from the work of retailers to cut their costs and prices, easing the cost of living for millions of households. The last few years should serve as a warning that where business costs rise significantly, consumer prices are forced up too.”
Dickinson added: “The next Government must address some of the major cost burdens weighing down the retail industry, including the broken business rates system, and inflexible apprenticeship levy. By doing so, retailers can invest in lower prices for the future – helping to reduce the cost of living pressures that many families face.”
Mike Watkins, head of retailer and business insight, NielsenIQ, said: “Shop price inflation is still slowing and this will be of help to shoppers as they plan their household budgets for essential goods and services. And with uncertainty around discretionary spending, we expect the intense competition across the marketplace to keep price increases as low as possible this summer.”
