Summer clothing discounts keep shop price inflation in check
Shop price inflation remained unchanged in June despite warnings of looming price hikes as a result of the Middle East crisis.
Prices remained 1.2% higher than a year ago in June, although this was above the three-month average of 1.1%, the British Retail Consortium (BRC) and NIQ said.
Inflation on non-food products increased slightly to 0.6% from May’s 0.5%, but food inflation fell to 2.4% from 2.7%.
BRC Chief Executive Helen Dickinson said: “In clothing and general merchandise, retailers responded to the hot weather with promotions across summer essentials in clothing, footwear and lighter household textiles, despite overall non-food inflation rising.
"While a competitive market is keeping inflation in check for now, retailers face mounting cost pressures, including higher National Insurance, the triple packaging tax and higher input costs from extreme weather and geopolitical tensions.
"To support the cost of living for households, government must reduce the costs of business. Starting with cutting the taxes and levies on energy bills would ease pressure on retailers and help keep prices down for customers."
It comes after newly crowned MP for Makerfield Andy Burnham, who is the favourite to become the new Prime Minister following Sir Keir Starmer’s resignation, yesterday repeated plans to slash business rates to support struggling high streets, independent businesses and pubs as part of efforts to revive failing town centres.
The figures also follow oil prices dropping to levels last seen before the war in the Middle East as the Strait of Hormuz reopens gradually following the US-Iran peace deal.
The declines follow last week’s interim agreement to end the war and the reopening of the Strait of Hormuz, through which a fifth of the world’s oil and gas is normally shipped.
The US and Iran signed a memorandum of understanding on Friday lasting 60 days, which has seen the US partially lift sanctions on Iranian oil exports.
