UK BRC: Food inflation soared in June

The British Retail Consortium (BRC) data shows food inflation soared in June, while the overall prices in British shops dropped at the slowest pace since November 2013. 

Overall shop prices declined 0.3% year-on-year in June compared with a 0.4% drop in May. The food price component rose 1.4%. 

Headline figure is misleading…

Helen Dickinson, BRC chief executive said in a statement -  “The fact that the headline number, minus 0.3 percent, shows that prices are still down on last year should not be misunderstood, the reality is that cost pressures faced by retailers continue to mount”

The deflationary trend is also due to the fact that supermarkets have been engaged in a price war amid falling oil prices.