July's prices hit rock bottom on the high street

High street prices hit a 2004 low in July, according to the British Retail Consortium.

The Shop Price Index found that prices in July were 0.66 per cent lower than in June, but remained 1.18 per cent higher than July last year.

Summer drinks promotions contributed to a fall in the cost of beer, cider and wine. Non-food also got cheaper as clothing prices slipped because of bad weather affecting sales.

BRC director general Kevin Hawkins said: 'High street prices fell to the lowest point this year last month, but yet again retailers and consumers face the prospect of the Monetary Policy Committee raising interest rates.'