Period Covered: 01 – 07
June 2024
- Shop Price annual inflation eased to 0.2% in June, down from
0.6% in May. This is below the 3-month average rate of 0.5%. Shop
price annual growth is its lowest since October 2021.
- Non-Food remained in deflation at -1.0% in June, down from
-0.8% in the preceding month. This is below the 3-month average
rate of -0.8%. Inflation is its lowest since October 2021.
- Food inflation decelerated to 2.5% in June, down from
3.2% in May. This is below the 3-month average rate of 3.0% and
is the fourteenth consecutive deceleration in the food category.
Inflation is its lowest since December 2021.
- Fresh Food inflation slowed further in June, to 1.5%, down
from 2.0% in May. This is below the 3-month average rate of 1.9%.
Inflation is its lowest since November 2021.
- Ambient Food inflation decelerated to 3.9% in June, down from
4.8% in May. This is below the 3-month average rate of 4.5% and
is the lowest since April 2022.
|
|
OVERALL SPI
|
FOOD
|
NON-FOOD
|
|
% Change
|
On last year
|
On last month
|
On last year
|
On last month
|
On last year
|
On last month
|
|
Jun-24
|
0.2
|
-0.2
|
2.5
|
-0.1
|
-1.0
|
-0.2
|
|
May-24
|
0.6
|
0.2
|
3.2
|
0.2
|
-0.8
|
0.2
|
Note: Month-on-month % change refers to changes in the
level of prices.
Helen Dickinson, Chief Executive of the British Retail
Consortium, said:
“During the height of the cost of living crisis, retailers
invested heavily in improving their operations and supply chains
to compensate for the impact of global shocks on input costs.
This is clearly paying off, with shop prices having risen just
0.2% over the past 12 months. Food inflation is now lower than
any time since 2021 helped by falling prices for key products
such as butter and coffee. Meanwhile, non-food prices went deeper
into deflation as retailers tried to drive sales by discounting.
This was particularly true for TVs with great deals to capitalise
on the Euros fever.
“Whoever wins Thursday's election will benefit from the work of
retailers to cut their costs and prices, easing the cost of
living for millions of households. The last few years should
serve as a warning that where business costs rise significantly,
consumer prices are forced up too. The next Government must
address some of the major cost burdens weighing down the retail
industry, including the broken business rates system, and
inflexible apprenticeship levy. By doing so, retailers can invest
in lower prices for the future – helping to reduce the cost of
living pressures that many families face.”
Mike Watkins, Head of Retailer and Business Insight,
NielsenIQ, said:
“Shop price inflation is still
slowing and this will be of help to shoppers as they plan their
household budgets for essential goods and services. And with
uncertainty around discretionary spending, we expect the intense
competition across the marketplace to keep price increases as low
as possible this summer.”
