British Retail Consortium Director General Helen <a href=Dickinson” height=”330″ src=”” width=”238″ />

Shop prices in the UK reported annual deflation fall of 0.2% for June 2013, a steepest fall since February 2007, according to British Retail Consortium (BRC).

The BRC-Nielsen Shop Price Index June 2013 has also revealed that in May 2013 annual deflation declined 0.1%.

However, food inflation increased to 2.7% from 2.4% in the previous month, while non-food sector recorded annual deflation of 1.9% in June.

BRC director general Helen Dickinson stated that the shop prices fell at the fastest rate since February 2007, reflecting the downward trend that began in May.

"The deflation is driven entirely by non-food, a reflection that the summer sales are well underway as retailers battle it out to shift stock and compete for customer spending," added Dickinson.

"The volatile weather also had a part to play in pushing down non-food prices. It’s telling that the categories which saw some of the deepest discounting – clothing, footwear, furniture and DIY – were those whose sales were hit the hardest during the lingering cold snap.

"With the recent consumer confidence figures indicating an increased willingness to make major purchases, now is a good time to buy big-ticket items at the best possible price," Dickinson concluded.

Image: BRC director general Helen Dickinson hopes food inflation to remain fairly stable over the medium term. Photo courtesy of BRC.