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Lowest Non-Food inflation since 2009

Non-food inflation slowed from 1.4% in June to 1% in July, the lowest rate since November 2009, according to the latest results from the BRC-Nielsen Shop Price Index.

Food inflation increased to 2.5% in July (from 1.7% in June), while overall shop price inflation remained unchanged at 1.5%.

British Retail Consortium director general Stephen Robertson said: "Good news for customers. Shop price inflation remained low and well below other measures of inflation as a slowdown in non-food prices compensated for an increase in food inflation.

"The overall figure remained the same as June and is half the rate of the official Consumer Price Index. It's clear the high street is not the main source of inflation."

He added: "Shop prices have remained stable largely due to aggressive discounting driving non-food inflation down to its lowest rate since November 2009. The price of furniture and flooring fell for the first time in seven months."

The Shop Price Index is designed to give an accurate picture of the inflation faced by shoppers on 500 of the most commonly bought items in shops which are representative of the most commonly shopped in stores.

Source : DIY

04 August 2010
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