UK shop price inflation hits record low: How retailers can increase footfall

Great news for UK shoppers and retailers: Shop price inflation hits lowest level since October 2021, opening opportunities for small businesses.

Key insights from the latest BRC report

Good news for UK shoppers and shop owners as The British Retail Consortium (BRC) reports shop price inflation is at its lowest level since October 2021, easing to just 0.2% in June.

According to the lates figures, food inflation fell significantly, driven by lower prices for essentials like butter and coffee, while non-food prices also saw a decline.

BRC chief executive Helen Dickinson attributes this easing of the cost-of-living crisis to retailers' investments in discounting, particularly during a period of global input cost shocks. She highlights that this relief for consumers is something the next government should appreciate.

While we may no longer be part of the EU, the Euro 2024 tournament has also contributed in part to the slower growth as retailers offered cheaper prices on televisions for home viewing.

Non-food items remained in deflation, at -1.0% in June, down from -0.8% in May. This category has been in deflation for the past six months, with notable price reductions in electronics like TVs and laptops (just in time for a summer of sport), and significant discounts in furniture and home goods.

This news could provide a boost to markets as well as consumer and business confidence. Passing on this ‘discount’ by introducing spot sales or promotions is a great way to reward your loyal customers and attract new ones.

Three thrifty tips to make the most of this ‘lowflation’ easing

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