Retail prices continued to fall through June - but are not set to last, according to a new report.
Key points from the BRC-NielsenIQ Shop Price Index for June 2021 are:
- Shop Price deflation accelerated to 0.7% year-on-year in June compared to May’s decrease of 0.6%. This is a slower rate of decline than the 12- and 6-month average price decreases of 1.6% and 1.6%, respectively.
- Non-Food deflation accelerated to 1.0% in June, compared to a fall of 0.8% in May. This is a slower rate of decline than the 12- and 6-month average price declines of 2.9% and 2.5%, respectively.
- Food deflation slowed to 0.2% in June from May’s deflation of 0.3%. This is the third consecutive month when Food prices fell. This is below the 12- and 6-month average price changes of 0.5% and -0.1%, respectively.
- Fresh Food prices fell for the seventh consecutive month in June, although deflation slowed to 0.7% in June from 1.0% in May. This is below the 12- month average price growth rate of -0.4% and above the 6-month average price growth of -0.9%.
- Ambient Food inflation eased to 0.6% in June, down from 0.7% in May. This is below the 12- and 6-month average price increases of 1.8% and 1.2%, respectively.
Helen Dickinson OBE, Chief Executive, British Retail Consortium, said: “There is good news for consumers as June saw overall prices fall at a slightly faster pace than last month. Non-food prices, particularly for fashion, remained deflationary as businesses tried to prolong the recent pickup in consumer spend. Food prices also fell, which is a testament to supermarkets battling to keep prices low for their customers.
“Meanwhile, retailers’ costs are continuing to mount due to global food price increases, Brexit red-tape, Covid related supply chain disruption, raw commodity shortages and increased shipping and petrol costs. The increasing cost burden on retailers may be passed onto the consumer, threatening price rises as the pressure mounts in the months ahead, especially with additional Brexit checks this autumn. The Government must help to minimise the cost impact on consumers by ensuring that the new checks and documentation requirements this autumn avoid adding further friction to the import of goods.”