It has been reported that shop prices fell once again last month by 1.8% from a 1.7% drop in April, marking three years of decreasing figures.
The BRC-Nielsen monthly shop prices index reports that non-food prices fell 2.7% and food prices dropped 0.3%, which was driven by a 0.8% drop in fresh food prices.
Helen Dickinson, BRC chief executive, said: “We’ve experienced a record run of falling shop prices and, for the time being, there’s little to suggest that’ll end any time soon.
“Looking slightly longer term we know that the recent commodity price increases will start to put pressure on retailers to raise their own prices. We would normally expect these input costs to filter through to prices eventually, but the big question is how far fierce competition in the industry will insulate consumers from price increases.”
