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BRC finds shop price inflation slows to 1.1% Wednesday, 4th July 2012
Photo credit: My Retail Media
Overall shop price inflation rose just 1.1 per cent in June, after a 1.5 per cent rise in May, bringing in the lowest level increase in two and a half years.
The British Retail Consortium (BRC) said a fall in the cost of crude oil three months ago and raw materials had finally filtered down to shop prices for June.
Food commodities also fell sharply for the period, with a drop in coffee and sugar leading to a decline in food inflation from 4.3 per cent to 3.4 per cent.
The price of non-food goods such as clothing and footwear, electricals, DIY, and hardware, fell by 0.3 per cent in June compared to 0.1 per cent in May.
Mike Watkins, senior manager of retail services at Nielsen, a retail measurement company, told the Press Association: "Prices continue to fall across retail stores which will be welcome news for the many households needing to make savings on bills and bigger-ticket items."
Looking ahead to the next few months, analysts are encouraged by a summer calendar of events, the highlight of which will be the Olympics, coupled with a fall in inflation, to provide shoppers with the right conditions to spend.