Food inflation was its lowest in 14 months in June, according to the British Retail Consortium Shop Price Index.

Food price inflation was 5.6 per cent in June compared to 6.4 per cent in May. Overall, annual shop price inflation was 0.7 per cent in June compared with 1.3 per cent in May. Non-food prices were 1.9 per cent lower than a year ago, compared with 1.3 per cent lower in May.

BRC director general Stephen Robertson said: “Food inflation is now the lowest it’s been for 14 months. That’s largely because of falling fresh food inflation, particularly for dairy products and some meats.

“The pound’s recent revival is easing the cost of imports and overseas demand for UK produce. Oil prices are up since the start of the year – but are half their peak last July. Food inflation is likely to keep falling.”

Non-food prices were 1.9 per cent lower than a year ago, compared with 1.3 per cent lower in May.

Robertson said: “Overall shop price inflation is the lowest since last December. Non-food prices have been cheaper than a year ago every month since then – with the biggest drops in clothing, footwear and electricals.

“With unemployment going up, consumer confidence continues to be fragile. Retailers have reacted by offering widespread discounts and promotions – usually at the expense of their own margins. The government must play its part by removing unnecessary burdens – allowing retailers to help hard-pressed customers and sustain retail jobs.”

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