Shop price inflation was unchanged in the month of June, as summer discounting by retailers kept costs for customers down.

Inflation across shops was unchanged at 1.2% year on year in June, the same as 1.2% growth in May, according to the latest figures from the BRC-NIQ Shop Price Monitor.

Non-food inflation increased to 0.6% over the period, compared to a growth of 2.7% in May – well below the three-month average of 2.7%.

Fresh food inflation decreased to 2.4% year on year in June, compared to a 3.4% jump in May, while ambient food inflation increased to 1.9% in the period, compared to a 1.6% jump in the previous month.

 

British Retail Consortium chief executive Helen Dickinson said: “Overall shop price inflation was unchanged in June. Food price growth eased, and as shoppers made the most of the sunshine, retailers helped keep the prices of summer treats such as strawberries and ice cream low thanks to bumper crops and strong competition. In clothing and general merchandise, retailers responded to the hot weather with promotions across summer essentials in clothing, footwear and lighter household textiles, despite overall non-food inflation rising.

“While a competitive market is keeping inflation in check for now, retailers face mounting cost pressures, including higher national insurance, the triple packaging tax, and higher input costs from extreme weather and geopolitical tensions. To support the cost of living for households, the government must reduce the costs of business. Starting with cutting the taxes and levies on energy bills would ease pressure on retailers and help keep prices down for customers.”

NIQ head of retailer and business insight Mike Watkins said: “Food inflation remains lower than a year ago, helped by price reductions and higher levels of promotion. There was also some downward pressure on prices in non-food seasonal products such as gardening and DIY, all of which will help shoppers as they manage their household budgets. With the potential for increased demand during the summer of sport, retailers will be looking to keep prices as low as possible for as long as possible.”

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