Fresh food price inflation slowed marginally to 0.9% June, with overall shop price deflation easing by 0.6% when compared to figures in May, according to the latest BRC-Nielsen shop price index.

Overall shop price deflation fell by 0.5% in June when compared to the same period last year, with non-food prices decreasing by 1.6% - both falling by a lower margin than figures reported last month.

Food inflation remained unchanged at 1.2%. However, ambient food inflation decreased slightly to 1.6%, down from 1.7% in May.

British Retail Consortium chief executive Helen Dickinson OBE said: “Food shoppers can breathe a sigh of relief with the rate of food inflation remaining steady and retailers continuing to fight back against a tough trading environment with competitive pricing and deals. Changes in global food prices of dairy and cereal as well as higher oil prices will mean this battle looks set to continue in the coming months.

“Against a backdrop of transformational change across the industry and some high profile store closures over recent weeks, government and policy makers need to do more to address the burden of things like business rates to help to ease the pressure and to support retailers to thrive through this transition and continue to offer great products to customers across the country.”

Nielsen’s head of retailer and business insight Mike Watkins said: “Food inflation across retail stores is holding at the same level as last month, which is good news for shoppers and helpful to retailers as the continuation of summer weather is supporting sales of seasonal fresh foods. And with promotions in place around the World Cup this will be encouraging shoppers to spend. However, pricing in the non food channel is more challenging and after many months of deflation and recent weaker demand, prices are still lower than a year ago.”