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Non-food price deflation 'eases'

The average price of non-food items rose by 0.9% in June, compared with May, the British Retail Consortium (BRC) and Nielsen have reported.

However, non-food prices were 1.6% lower in June in comparison with the same period last year.

Overall shop prices fell by 0.5% in June, which the BRC said was a “significant easing of deflation from May’s decline of 1.1%”.

Helen Dickinson, chief executive of the BRC, said: “For non-food, there’s been an easing in deflation largely driven by some retailers bringing forward the introduction of new ranges this year.

“This effect on the index will be temporary and, given the strength of the competitive pressures in the industry, we’re are likely to see non-food prices slide further into deflation in coming months.

“Non-food deflation eased by almost a percentage point in June to 1.6% from 2.5% in May. This is the lowest rate of deflation since December 2017.”

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