UK shop prices fell by 2% in June, deepening from the 1.8% decline in May. The drop marks the 38th consecutive month of price drops.
The figures from the British Retail Consortium and Nielsen in their monthly shop price index show non-food deflation at 2.8% in June compared with 2.7% in May.
Meanwhile, food deflation further deepened in June, falling to 0.8% from 0.3% in May.
Chief executive of the British Retail Consortium, Helen Dickinson said: “This extraordinary 38 month run of deflation has undoubtedly been good for consumers. While it has been driven largely by falling prices for non-food items we have, from time-to-time, seen food in deflationary territory as well – which provides the real boon for household budgets. June was one of those months with food prices falling by 0.8%, the deepest deflation in food for over a year.”
Fresh food saw a further acceleration in its deflation rate, falling to 1.5% from 0.8% in May, the largest change since September 2015. Ambient food inflation slowed to 0.1% in June from 0.4% in May.
