Shop prices fall for 38th consecutive month

Shop prices fell 2% in June, the 38th consecutive decline and a deepening from the 1.8% price fall recorded in May.

That’s according to the latest British Retail Consortium (BRC) and Nielsen Shop Price Index, which revealed the fall was lower than the 12-month average decline of 1.8%.

Non-food deflation fell to 2.8% in June from the 2.7% recorded in May, while food deflation deepened further in June falling to 0.8% from 0.3% in May

Helen Dickinson, chief executive at the BRC, said: “This month’s figures show overall shop prices falling once again. This extraordinary 38 month run of deflation has undoubtedly been good for consumers.

“While it has been driven largely by falling prices for non-food items we have, from time-to-time, seen food in deflationary territory as well – which provides the real boon for household budgets.”

Mike Watkins, head of retailer and business insight at Nielsen, added the continued deflationary environment is good news for shoppers, but is “added pressure” for retailers as they balance increased costs from the national living wage and investment in multi-channel.

He said: “A return to inflation is not expected just yet so it’s business as usual over the summer months and encouraging shoppers to keep spending is the priority.”