Researchers said shops had been cutting non-food prices in an attempt to revive “subdued” demand for big-ticket items. It came following a sharp fall in retail sales in April amid heavy rainfall across much of the country.
The rate of price rises in UK shops has returned to “normal levels”, according to new industry figures.
Overall annual shop price inflation eased to 0.6% in May, down from 0.8% in April, the British Retail Consortium (BRC) and NielsenIQ said.
Advertisement
To order your copy, send a WhatsApp message to +1 317 665 2180
Non-food products remained in deflation – at -0.8% in May – a fall from -0.6% in the previous month.
Researchers say shops have been cutting prices in an attempt to revive “subdued” demand for big-ticket items such as furniture and TVs ahead of Euro 2024.
Food prices continued to rise but at a slower rate, with inflation here decelerating slightly from 3.4% in April to 3.2% in May.
The cost of ambient foods that can be stored at room temperature – such as biscuits – has remained stubbornly sticky because of higher global sugar prices.
It follows a sharp fall in retail sales in April, according to official figures released on Friday.
The Office for National Statistics (ONS) reported that the number of goods and services bought by households dropped 2.3% during the month, with higher-than-average rainfall partly to blame.
BRC chief executive Helen Dickinson said further action via “future government policy” was needed to support retailers to keep inflation low.
“With an election in a matter of weeks, it is vital that parties detail their support for customers and retailers in their upcoming manifestos,” she added.
Sky News
