The British Retail Consortium (BRC) and Nielsen have released their latest Shop Price Index for May 2018, revealing a drop of 1.1% compared to last year.
This is the 61st month of falling Shop Prices and the deepest deflation since January 2017.
The latest report shows that deflation in non-food prices deepened further in May, with prices 2.5% lower than the same month in 2017, resulting in the deepest deflation in non-food since August 2016.
“Overall shop prices fell again in May as the impact of the pound’s fall following the EU referendum reduces and the challenging retail environment continues to mean retailers must compete on price,” commented BRC chief executive Helen Dickinson OBE.
“While food inflation has increased this month as the weather, oil price and other geo-political factors have influenced global agricultural markets, we expect overall prices to fall in coming months.
“Retailers’ overall sales revenues are under pressure from falling prices and this comes at the same time as business rates and other public policy decisions are pushing up operating costs; leaving retailers squeezed at both ends. The consequences of which have been plain to see.”
Dickinson concluded: “Government and policy makers must do more to address the burden of business rates and help to ease the pressure.”
Subscribe to the free MI Focus newsletter to get more stories like this sent straight to your inbox.