LONDON, 2014-6-5 — /EPR Retail News/ — Food inflation remained unchanged at 0.7% from April – the lowest ever recorded. Non-food reported annual accelerated deflation of 2.8% in May from 2.7% in April. Non-food has reported deflation for the fourteenth consecutive month.
Helen Dickinson, British Retail Consortium Director General, said: “May has seen shop price deflation remain unchanged at 1.4 per cent, the thirteenth consecutive month of deflation.
“We’ve also past the fourteenth consecutive month of non-food deflation, mainly as the result of good bargains in categories popular with consumers in summer months such as clothing and footwear. Value was also a mainstay across the gardening and DIY categories, as retailers competed to cater for strong demand over the May Bank Holiday.
“Food inflation remaining at its lowest level since our records began is great news for hard-pressed households as the summer approaches, and confirms that retailers are responding to current conditions by matching attractive offers with those products most in demand at this time of the year.
“Further evidence that consumer confidence is steadily improving was picked up by the GfK index which is now at a nine year high. The everyday low prices offered by retailers have clearly played a role in the rise of household spending.
“With the World Cup fast approaching I would expect retailers to continue to keep prices down for the foreseeable future.”
Mike Watkins, Head of Retailer and Business Insight, Nielsen, said: “Food inflation is still low, many supermarkets are price cutting and non-food prices remain deflationary, so the high street continues to generate little inflationary pressure. Little in the way of immediate seasonal or weather related price increases is anticipated so the outlook for the next three months is for relatively stable shop price inflation. Helped by the increases in consumer confidence since the start of the year, this should encourage shoppers to spend more freely over the summer months.”
British Retail Consortium, 21 Dartmouth Street, Westminster, London, SW1H 9BP. 020 7854 8900. info@brc.org.uk.