Shop price annual inflation is at lowest level since November 2021, easing to 0.6% in May, down from 0.8% in April, according to the latest BRC-NIQ Shop Price Index.
The figure sits below the three-month average rate of 0.9% and was helped by Non-Food’s increasing deflation (-0.8% in May, down from -0.6% in April). The three-month average rate is -0.4% and Non-Food inflation is its lowest since October 2021.
Food inflation slowed to 3.2% in April, down from 3.4% in April. This is below the three-month average rate of 3.5% and is the 13th consecutive deceleration in the Food category, as well as the lowest rate since February 2022.
Helen Dickinson, Chief Executive, British Retail Consortium, said there was relief for customers as shop price inflation returned to normal levels.
She added: “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.”
Ahead of the General Election on July 4, Dickinson called on the next government to address the cost burden that retailers face from policies like business rates and packaging taxes. “It is vital that parties detail their support for customers and retailers in their upcoming manifestos.”
