Shop price inflation in the UK eased in July, hitting its lowest level this year as retailers mitigated the wet weather by offering larger discounts.
According to the latest British Retail Consortium-NielsenIQ tracker, annual shop price inflation decelerated to 7.6% in July, down from 8.4% in June.
Helen Dickinson, chief executive of the BRC, said: "Shop price inflation fell to its lowest level of 2023 and, for the first time in two years, prices fell compared to the previous month.
"Leading the cuts was clothing and footwear, where retailers mitigated wet weather with larger discounts. Food price inflation also slowed to its lowest level this year, with falling prices across key staples such as oils, fats, fish, and breakfast cereals."
Food inflation cooled to 13.4% in July, down from 14.6% in June, the third consecutive deceleration in the food category and the lowest level since December. It was below the three-month average rate of 14.5%.
The figures will be welcomed by the Bank of England's Monetary Policy Committe which meets this week and is expected to increase interest rates by a further 25 basis points, although a heftier 50bps hike can't be ruled out.