(Alliance News) - UK shop price inflation decelerated in June, with price cuts for basket staples such as milk and eggs easing some pressure on the consumer, numbers on Tuesday showed.
According to the latest British Retail Consortium-NielsenIQ tracker, annual shop price inflation in the UK ebbed to 8.4% in June, from 9.0% in May. June's reading was also below the three-month average inflation rate of 8.7%.
Food inflation, recently a major driver of price pressure for the UK consumer, abated to 14.6%, from 15.4%. Fresh food inflation eased to 15.7% from 17.2%. Ambient food inflation decelerated slightly to 13.0% from 13.1%.
"Households up and down the country will welcome the easing of shop price inflation in June. Food inflation slowed for the second consecutive month, particularly for fresh products, as retailers cut the price of many staples including milk, cheese and eggs. Clothing and electrical goods also saw falling prices, helping customers to pick up a bargain ahead of the summer holidays," BRC Chief Executive Helen Dickinson commented.
"If the current situation continues, food inflation should drop to single digits later this year. However, it is imperative that government does not hamper this progress by introducing costly new policies."
Non-food inflation eased to 5.4% in June, from 5.8% in May.
By Eric Cunha, Alliance News news editor
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