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Shop prices were down 1.9% in May compared with the same time last year – unchanged from April’s rate of decline.
This is according to the British Retail Consortium (BRC) and Nielsen Shop Price Index which recorded its 25th consecutive month of shop price deflation, with falling non-food prices now in its third year.
Non-food deflation remained at 2.5% during the month, while food prices reported annual deflation of 0.9% for the third consecutive month. On a 12-month average basis, the index reported deflation of 1.8%.
Helen Dickinson, director general at the BRC, said: “Wider macro-economic data continues to be supportive for the consumer. The main measure of UK inflation turned negative in April for the first time on record, with the rate falling to -0.1%. This is expected to be temporary and should result in increased consumer spending.
“Now that the general election has taken place, government policy is likely to advance rapidly. A number of areas will obviously require consideration, not least, ensuring that the structural review of business rates remains ambitious and far-reaching. This is vitally important for retailers who are presently burdened with above inflation operating costs.”
