Shop prices inched higher in June, food prices to fall

<div>INFLATION in shop prices rose only modestly in June and at a slower rate than in May, according to the British Retail Consortium-Nielsen&rsquo;s shop price inflation index released today.<br /><br />Prices rose by 0.7 per cent in June compared with the same period last year and was held up by food inflation of 5.6 per cent last month. Non-food products saw annual deflation of 1.9 per cent, more than was experienced in May.<br /><br />But annual food inflation is now at its lowest level for 14 months and it is expected to fall further this year, especially given last year&rsquo;s highs when commodity prices such as wheat and rice were at record levels.<br /><br />Non-food deflation was driven by increasing falls in price of electrical, clothing and footwear and furniture goods.</div>