Shop price inflation has slowed this month
The British Retail Consortium said prices in supermarkets and retail chains rose by 8.4% in June compared with the same month last year, down from May’s 9.0% annual increase which was the highest rate since the BRC’s records began in 2005.
Helen Dickinson, OBE, Chief Executive of the British Retail Consortium, said:
“Households up and down the country will welcome the easing of shop price inflation in June. Food inflation slowed for the second consecutive month, particularly for fresh products, as retailers cut the price of many staples including milk, cheese and eggs. Clothing and electrical goods also saw falling prices, helping customers to pick up a bargain ahead of the summer holidays.
“If the current situation continues, food inflation should drop to single digits later this year. However, it is imperative that Government does not hamper this progress by introducing costly new policies. Reforms to the packaging Levy (Extended Producer Responsibility) and a new deposit return scheme, could create an additional £4bn burden on retailers and their customers. Along with a rise in business rates, and the introduction of border controls in October, these policies could hinder the Government’s efforts to combat inflation.”
