Shop prices fell last month for the first time since October last year in a sign of “fierce competition between retailers”, according to the BRC-Nielsen Shop Price Index.
Prices fell slightly by 0.1% in June compared to May, when prices increased 0.8%. This is below the 12- and six-month average price increases of 0.3% and 0.5% respectively.
Non-food and fresh food inflation eased during the same period. Non-food prices decreased 1.2% from a 0.2% increase in May, and fresh food inflation declined to 1.4% from 1.5% in May.
However, food inflation held steady at 1.8% in June, slightly below the six-month average price increase of 1.9%.
Ambient food prices inflated 2.3% during June, up from 1.5% in May, below the six-month average increase of 2.4%.
BRC chief executive Helen Dickinson said: “While the overall fall in prices was small and food inflation remains steady, it nonetheless represents a welcome break for consumers after several months of inflation. It is also a sign of the fierce competition between retailers, which has long kept prices low for British consumers.”
Nielsen head of retail and business insight Mike Watkins said: “Food inflation is broadly stable and this looks set to continue over the summer with many supermarkets reducing prices, helping to offset some of the cost increases coming through the supply chain.”
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