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Shop price annual inflation in the UK was steady in July, but uncertainty lies ahead, the latest data from the British Retail Consortium showed on Tuesday.
The BRC-NielsenIQ shop price annual inflation remained at 0.2% in July, unchanged from June. This is below the three-month average rate of 0.3%. The annual rise in shop prices remained at its lowest rate since October 2021.
Non-food prices remained in deflation, with prices falling 0.9% in July, compared to a 1.0% drop in June.
Food price inflation slowed to 2.3% in July, down from 2.5% in June.
‘Holiday makers could pick up bargain summer wear and summer reads as clothing and footwear prices fell for the seventh consecutive month amidst persistent weak demand, and the prices of books fell. The 2023 declines in global food commodity prices continued to feed through, helping bring down food inflation rates over the first seven months of 2024. However this shows signs of reversing, suggesting renewed pressure on food prices in the future. Sports gatherings for Wimbledon and the Euros benefitted from discounted snacking items such as crisps and soft drinks,’ said BRC Chief Executive Helen Dickinson.
‘UK households suffered from high levels of inflation in 2022 and 2023 and can celebrate inflation levels returning to normal over the first half of this year. But, with the outlook for commodity prices remaining uncertain due to the impact of climate change on harvests domestically and globally, as well as rising geopolitical tensions, renewed inflationary pressures could be lurking just over the horizon.’
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