The annual rate of shops prices inflation in Britain's supermarkets has fallen to 0.2% in June, down from 0.6% in May, and the lowest pace since October 2021.
The data, published by the British Retail Consortium (BRC) and NielsenIQ, found that food inflation measured 2.5% last month, down from 3.2% in May, and its 14th consecutive fall.
Price rises for fresh food slowed to 1.5%, from 2% in the previous month, while non-food products remain in deflationary territory, with a 1% fall.
Helen Dickinson, chief executive of the consortium, said: “Food inflation is now lower than any time since 2021, helped by falling prices for key products such as butter and coffee.
She added: "Meanwhile, non-food prices went deeper into deflation as retailers tried to drive sales by discounting. This was particularly true for TVs, with great deals to capitalise on the Euros fever."
Mike Watkins, head of retailer and business insight at NielsenIQ, said: "Shop prices inflation is still slowing and this will be of help to shoppers as they plan their household budgets for essential goods and services.
"With uncertainty around discretionary spending, we expect the intense competition across the marketplace to keep price increases as low as possible this summer."
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