Shop price inflation slows in June, poll reveals. A Tuesday survey revealed that British shop price inflation eased this month, relieving households from rising living costs and borrowing charges.
The British Retail Consortium said that supermarket and retail chain prices jumped 8.4% in June compared to the same month last year, down from May’s 9.0% increase, the biggest since 2005.
The BRC announced the second drop in retail price inflation this year in April.
Food prices climbed less slowly for a second month, but at 14.6%, they continued to pressure many families.
“If the current situation continues, food inflation should drop to single digits later this year.” BRC CEO Helen Dickinson.
She said retailers lowered milk, cheese, eggs, apparel, and electronics prices.
Tesco (TSCO.L), Britain’s largest supermarket, reported food inflation peaked this month.
Last week, the Bank of England hiked its benchmark Bank Rate to 5% to fight slower-than-expected inflation.
“If global supply chain costs continue to fall, we may now be past the peak of price increases,” said Mike Watkins, Head of Retailer and Business Insight at NielsenIQ, which co-produces the data.
“However, with most households needing to save money, purchasing behaviour for the rest of this year is still likely to shift towards essential needs with discretionary consumption being de-prioritised or delayed.”
BRC prices were gathered June 1-7.
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