Prices across UK shops fell by 1.6% last month as retailers looked to tempt in cautious shoppers amid the coronavirus crisis, according to a report.
But the latest shop price index from the British Retail Consortium and Nielsen showed the fall was lower than the 2.4% drop in May, which was the biggest for at least 14 years.
The report found the biggest discounts were in the non-food ranges, where prices tumbled 3.4% in June, having fallen by 4.6% in May.
Consumers have benefited as shop prices have fallen for the 13th consecutive month, however the situation for many retailers, such as those in clothing and footwear, remains very challengingHelen Dickinson, BRC
Food prices continue to rise, holding steady at a 1.5% increase last month, with fresh food up 0.5% and ambient ahead by 2.9%.
Helen Dickinson, chief executive at the British Retail Consortium (BRC), said: “Consumers have benefited as shop prices have fallen for the 13th consecutive month, however the situation for many retailers, such as those in clothing and footwear, remains very challenging.
“Sales have dropped significantly since mid-March and two thirds of businesses are reporting turnover below pre-crisis levels, meaning there is a serious risk to jobs as a result.”
She said the woes for the retail sector would be compounded if the Government fails to agree a Brexit deal by the end of year deadline.
Nielsen said data showed Britons have been buying more in their supermarket shops during the lockdown, including alcohol, where sales have surged more than 30% in recent weeks.
“Retailers and their suppliers continue to work together to cope with the unprecedented high demand due to the closure of most of the out of home and hospitality channels,” said Mike Watkins, head of retailer and business insight at Nielsen.