Shop price inflation is back to ‘normal levels’, says BRC

Annual shop price inflation eased to 0.6% in May, down from 0.8% in April and below the three-month average rate of 0.9%, according to the latest BRC-NilesenIQ Shop Price Index.

Food inflation dipped to 3.2% in May, down from 3.4% in the previous month. May marked the thirteenth consecutive monthly decline in the food category and it also fell below the three-month average of 3.5%.

Meanwhile, fresh food inflation slowed to 2%, down from 2.4% in April.

Ambient food inflation dropped further to 4.8%, edging down marginally from 4.9% the previous month.

The non-food category remained in deflation at -0.8% in May, down from -0.6% in April and below the three-month average rate of -0.4%.

BRC chief executive Helen Dickinson said: “Shop price inflation has returned to normal levels, at just 0.6%. 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.

“In non-food, retailers cut furniture prices in an attempt to revive subdued consumer demand for big-ticket items, and football fans have been able to grab some bargains on TVs and other audiovisual equipment ahead of this summer’s Euros.

“Retailers are playing a key part in bringing inflation down, but future government policy must support this, too. Retail plays a key role in every part of the country, from the smallest village to the largest city, employing millions of people and serving millions more.

“As the cost burden of new policies rises – from business rates to packaging taxes – this affects not just the businesses but their customers, too. With an election in a matter of weeks, it is vital that parties detail their support for customers and retailers in their upcoming manifestos.”