UK shop prices fall again in June, but less than in May - BRC

LONDON (Reuters) - Prices in shops in Britain fell again in June as retailers tried to lure shoppers out of their coronavirus caution but the size of the drop was smaller than in May, an industry survey showed on Wednesday.

Shop prices fell by 1.6% in annual terms, following a 2.4% drop in May which was the biggest decline since at least 2006, said the British Retail Consortium trade body and market research firm Nielsen.

Food inflation held steady at 1.5% but non-food prices dropped by 3.4%.

"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," Helen Dickinson, the BRC's chief executive, said.

Britain's most closely watched inflation rate fell to 0.5% in May, its lowest in nearly four years. Bank of England Deputy Governor Ben Broadbent has said it could go below zero in the coming months.

(Writing by William Schomberg; Editing by Gareth Jones)