Shop price inflation fell to 1.8% in May from 2% in April according to the Shop Price Index (SPI) from the British Retail Consortium (BRC). Food inflation rose to 2.2% from 2% but non-food inflation fell to 1.6% from 2% in April.
A BRC spokesman said that the fall in the SPI happened despite big rises in some costs. Clothes and electricals are cheaper than last year but the rises in the price of oil are putting pressure on transport costs. Prices are being held down as customers still lack the confidence to spend. Tinned and packet food were the main causes in the rises in food inflation as falls in commodity prices, for products like coffee and wheat, still in the system are being awaited.
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