Markets / DATA & RESEARCH / Jun.06

Shop price inflation inches up in May

BRC monitor says non-food deflation slowed

The cost of non-food goods was responsible for an increase in the British Retail Consortium's Shop Price Index in May, the trade and lobby group said.

Its monthly monitor, published in conjunction with analyst Nielsen, jumped from 1.3 per cent in April to 1.5 per cent last month.

Food inflation was steady at 4.3 per cent, the BRC said, while non-food prices, which have been falling, dropped at a slower rate during the month.

Stephen Robertson, its director general, said: "Food inflation held steady as easing commodity prices helped combat rising property and distribution costs.

"There's still a possibility of future supply shocks but the outlook for inflation looks set to remain at modest levels. Apart from a blip in March, food inflation has been stable since last October."