High Street prices fall at slower pace

Prices in British high street stores fell at a slower pace last month as consumer sentiment strengthened, the British Retail Consortium (BRC) said.

By The Newsroom
Wednesday, 8th July 2015, 10:24 am

The BRC said that its shop price index dropped by 1.3 per cent in June, the smallest decline since January, after a 1.9 per cent drop in May.

Helen Dickinson, BRC director general, said: “Consumer spending, one of the main drivers of the recovery, should remain robust over the summer.”

Britain’s broader official measure of inflation, the consumer prices index, showed its first year-on-year fall in prices in more than 50 years in April, before rising back above zero in May.

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The Bank of England expects the CPI to start rebounding rapidly towards its 2 per cent target later this year as the steep fall in oil prices in late 2014 drops out of year-on-year comparisons.

The BRC said it expected that low inflation, combined with rising wages and consumer lending, would help ensure demand remained robust over the coming months.