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Non-food shop price deflation continues in June

Non-food shop prices fell by 2.8% year on year in June, following a 2.7% fall in May and a 2.9% fall in April.

Overall shop prices fell by 2% including both food and non-food, the British Retail Consortium-Nielsen Shop Price Index showed.

Mike Watkins, head of retailer and business insight at Nielsen, said the continued deflationary environment is creating added pressure for retailers as they balance increased costs from the national living wage and investment in multichannel with volatile consumer demand.

“A return to inflation is not expected just yet, so it’s business as usual over the summer months and encouraging shoppers to keep spending is the priority,” he said.

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