Shop price inflation across the UK stood at -0.1% in the month of July, according to the latest BRC-Nielsen Shop Price Index.
This was below the 12-month and 6-month average price increases of 0.3% and 0.4%, the data found.
Food inflation in July stood at 1.7%, down from 1.8% the previous month, while fresh food inflation slowed to 1.2% from 1.4% in June.
'Within the Fresh Food category, there was a mix of inflationary pressures. Meat was the only deflationary element of the category, with prices falling for a third consecutive month, as global price developments are feeding through into final consumer prices,' the BRC said in a statement.
Ambient food inflation increased to 2.4%, up from 2.3% in June, the data showed, while non-food prices fell by 1.2%, the same rate as in June.
Stable Prices
“Many consumers will be pleased to see the price of non-food products continuing to fall at a steady rate, underlining the stiff competition between retailers that is driving down prices," commented Helen Dickinson, chief executive of the British Retail Consortium. "Furthermore, food price inflation eased slightly, in part due to the fall in global food prices.
“While we expect food inflation to remain steady over the next few months as retailers work hard to keep prices low, this will depend on whether the UK can navigate an agreement with the EU to ensure frictionless tariff-free trade continues after October 31st.”
Elsewhere, Mike Watkins, head of retailer and business insight at Nielsen, added that with so much economic uncertainty in the market, the lack of food price inflation was "good news for shoppers" in July.
"Looking ahead for the next few months, we anticipate broadly stable food inflation and non food retailers looking to keep any price increase to a minimum, as shoppers continue to be cautious around their retail spend," he said.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
