A SHOP price inflation reduction means football fans could bag bargain TVs ahead of the Euros, but the BRC is looking for support for retailers in election manifestos.
The British Retail Consortium, in conjunction with NielsonIQ, have released figures illustrating that prices in retail have returned to “normal levels” this May.
The figures show that shop price annual inflation eased to 0.6% in May, down from 0.8% in April which is below the 3-month average rate of 0.9%.
Shop price annual growth is its lowest since November 2021.
This comes as Prime Minister, Rishi Sunak announced the date of the General Election last week – a day in which general inflation in the UK fell to 2.3%, just above the Bank of England’s 2% target.
The BRC has said that they hope to see parties provide policy support for British retailers in any upcoming election manifestos before the public hit the polls on July 4.
Helen Dickinson, CEO of the BRC, said: “Shop price inflation has returned to normal levels, at just 0.6%.
“This was helped by slowing food inflation, with fresh food inflation falling to its lowest level since November 2021.
“Meanwhile, ambient food inflation remained stickier, especially for sugary products which continued to feel the effects of high global sugar prices.
“In non-food, retailers cut furniture prices in an attempt to revive subdued consumer demand for big-ticket items and football fans have been able to grab some bargains on TVs ahead of this summer’s Euros.
“Retailers are playing a key part in bringing inflation down, but future government policy must support this too.
“Retail plays a key role in every part of the country, from the smallest village to the largest city, employing millions of people, and serving millions more.
“As the cost burden of new policies rises – from business rates to packaging taxes – this affects not just the businesses, but their customers too.
“With an election in a matter of weeks, it is vital that parties detail their support for customers and retailers in their upcoming manifestos.”
Non-Food remained in deflation at -0.8% in May, down from -0.6% in the preceding month. This is below the 3-month average rate of -0.4% whilst inflation is at its lowest since October 2021.
Food inflation decelerated to 3.2% in May, down from 3.4% in April. This is below the 3-month average rate of 3.5% and is the 13th consecutive deceleration in the food category.
Fresh food inflation slowed further in May, to 2.0%, down from 2.4% in April. This is below the 3-month average rate of 2.3%.
Ambient Food inflation decelerated to 4.8% in May, down marginally from 4.9% in April. This is below the 3-month average rate of 5.0% and is the lowest since June 2022.
