LONDON (News Service) -On Wednesday, July 4, 2018, A survey reported that British shop prices, went down sharply in the month of June than in the month of May.
The British Retail Consortium (BRC) said, “Overall prices paid by shoppers were 0.5 percent lower last month than in June 2017, a smaller decline than May’s 1.1 percent slide, Shop prices as measured by the BRC have shown deflation for 62 straight months, reflecting the pressure on retailers to offer discounts to win over shoppers, many of whom have seen sub-inflation pay increases for much of the past decade. Food inflation held steady at 1.2 percent in June while non-food prices fell by 1.6 percent, less steep than May’s 2.5 percent decline”.
BRC Chief Executive Helen Dickinson said, “Food shoppers can breathe a sigh of relief with the rate of food inflation remaining steady and retailers continuing to fight back against a tough trading environment with competitive pricing and deals. Changes in global food prices of dairy and cereal, as well as higher oil prices, will mean this battle looks set to continue in the coming months”.
The Bank of England expects inflation, which stood at 2.4 % in the month of May, to slow further this year from a peak of 3.1% in the month of November. Also expecting it to raise the interest rates so that inflation goes back to its 2% target. Britain’s headline inflation rose sharply after the 2016 referendum decision to leave the European Union which pushed down the value of the pound. But the impact of the weaker currency has diminished in recent months.