UK’s surging shop price inflation slows in June, survey shows

LONDON, June 27 (Reuters) – British shop price inflation slowed this month, providing a little bit of respite for households hit by a surge in the price of residing and better borrowing prices, a survey confirmed on Tuesday.

The British Retail Consortium stated costs in supermarkets and retail chains rose by 8.4% in June in contrast with the identical month final 12 months, down from May’s 9.0% annual enhance which was the very best fee because the BRC’s data started in 2005.

The fall in shop price inflation was the second this 12 months after the BRC reported a slight dip in April.

Food costs rose much less slowly for a second month in a row however at 14.6% the rise continued to symbolize an enormous pressure on the households of many households.

“If the current situation continues, food inflation should drop to single digits later this year.” BRC chief government Helen Dickinson stated.

Retailers lower the price of staples equivalent to milk, cheese and eggs whereas clothes and electrical items additionally noticed falling costs, she stated.

Earlier this month, Tesco (TSCO.L), Britain’s largest retailer, stated meals inflation had peaked.

The Bank of England final week raised borrowing prices to their highest since 2008, taking its benchmark Bank Rate to 5%, because it ramped up its combat towards inflation that has fallen extra slowly than it hoped.

“If global supply chain costs continue to fall, we may now be past the peak of price increases,” Mike Watkins, Head of Retailer and Business Insight at NielsenIQ which co-produces the info, stated.

“However, with most households needing to save money, purchasing behaviour for the rest of this year is still likely to shift towards essential needs with discretionary consumption being de-prioritised or delayed.”

The BRC information was based mostly on costs collected June 1-7.

Reporting by William Schomberg, enhancing by Andy Bruce

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