Lowest-ever food inflation recorded
The British Retail Consortium (BRC) has recorded the lowest-ever rate of food inflation caused by “fierce competition”.
Food inflation fell to 0.6% in June, according to the BRC, which remains its lowest rate since the BRC began recording. Helen Dickinson, British Retail Consortium director general said this has been caused by the supermarket price war: “This is the deepest level of deflation in non-food and the lowest rate of inflation for food since 2006, when our records began. Added to this, we see that consumer confidence is at its highest level since April 2005. Fierce competition among grocers has driven food price inflation to record low levels and, with some grocers having announced plans to keep prices down, consumers stand to benefit for a while to come.”
The BRC reported that overall shop prices have deflated for the 14th consecutive month, standing at 1.8% for June. Mike Watkins, head of retailer and business insight, Nielsen, said this price trend was set to continue throughout summer.
“Food inflation is still low, many supermarkets are price-cutting and non-food prices remain deflationary, so the high street continues to generate little inflationary pressure. Little in the way of immediate seasonal or weather-related price increases is anticipated, so the outlook for the next three months is for relatively stable shop price inflation. Helped by the increases in consumer confidence since the start of the year, this should encourage shoppers to spend more freely over the summer months.”
Want more stories like this in your inbox?
Sign up for our FREE email newsletter