But weather and football keeps food prices up
The latest British Retail Consortium (BRC) Shop Price Index (SPI) shows prices in June were down 0.20 per cent, compared with June last year.

This is a smaller decrease than the -0.48 per cent drop reported for May.

Month on month, prices rose 0.01 per cent overall. This was largely driven by increases in the price of food, which rose 0.24 per cent. Prices of non-food items were down 0.10 per cent.

ACNielsen retailer services senior manager Mike Watkins said: 'Warm weather and football fever have kept food retailing buoyant, with top-line market growths of 8 per cent at the grocery multiples during the past few weeks. For many non-food retailers, it's been more difficult to generate footfall and we see little evidence to suggest prices will rise in the future.'

BRC director general Kevin Hawkins added: 'Price deflation is continuing apace - the continued discounting and promotional activity is coming at a cost to retailers' margins and any growth in the market is driven by lower prices.'

The price of electrical items fell 1.54 per cent during June - the largest decrease so far this year. An increase in promotional activity surrounding the World Cup is thought to be the main reason behind the fall in prices.

Following two consecutive months of rising prices, the cost of clothing fell 0.49 per cent.

DIY and hardware prices increased 0.16 per cent - the second consecutive month prices have risen. Furniture prices also rose for the first time since March.

Scottish prices rose 0.48 per cent, bringing them in line with the rest of the UK. It is the biggest month-on-month rise so far this year. In Scotland, levels of promotional activity fell in June and there was not the same promotional activity surrounding the World Cup.

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