Non-food deflation decreased to 1.5% 12 months on 12 months in Might, towards the same 1.4% dip in April, in accordance with the most recent BRC-NielsenIQ Store Value Index. This was greater than the three-month common of -1.6%.
Elsewhere, meals inflation was up 2.8% 12 months on 12 months in Might, following a 2.6% rise in April. This was above the three-month common of two.6%.
Helen Dickinson, CEO of BRC, stated: “Whereas total store costs stay unchanged in Might, meals inflation rose for the fourth consecutive month. Non-food costs remained in deflation, however this slowed in classes akin to vogue and furnishings as retailers started to unwind heavy promotional exercise.
“With retailers now absorbing the extra £5bn in prices from April’s elevated Employer Nationwide Insurance coverage contributions and Nationwide Residing Wage, it’s no shock that inflation is rearing its head as soon as once more.”
Mike Watkins, head of retailer and enterprise perception at NielsenIQ, added: “While buyers are seeing financial savings on the checkout as retailers enhance promotional exercise, growing costs remains to be an additional problem to client spending alongside rising family payments.
“And if client confidence stay weak as seems seemingly, then retailers could should work more durable to encourage buyers to spend over the summer season.”
