Shop prices fell for the thirty-eighth month in a row in June

 
Helen Cahill
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Londoners Hit The Shops As The Sales Season Begins
Shoppers are getting more for their money in stores (Source: Getty)

Prices at the check-out are still getting cheaper, according to data released today, providing some good news for households - but don't expect shopping baskets to remain cheap forever.

Data from the British Retail Consortium (BRC) and Nielsen shows overall shop prices deflated by 2 per cent in June, compared to a 1.8 per cent fall in May.

Non-food deflation fell from 2.7 per cent in May to 2.8 per cent in June.

As the supermarket price-war continued in June, food deflation fell to 0.8 per cent, from 0.3 per cent in May.

The figures come after Sainsbury's gave up its stake in the dicounter grocery market by shutting up its Netto UK stores, which was a joint venture with Dansk Supermarked Group.

Helen Dickinson, chief executive, BRC, said the good news for consumers is likely to continue in the short term.

Dickinson added: "This month's figures show overall shop prices falling once again. This extraordinary 38 month run of deflation has undoubtedly been good for consumers.

"While the good news for household budgets continues, prices in store will eventually rise again. However, the time it takes for any price increases to make a re-appearance will depend on a combination of factors including the future value of the pound, commodity prices and any eventual impact of last week's Brexit vote on input costs."

Mike Watkins, head of retailer and business insight at Nielsen, said "changes in the economic landscape are anticipated next year", but for consumers, summer is set to be "business as usual".

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