Shop price deflation increased to 1.8% in May from -1.7% in April, according to the BRC-Nielsen shop price index.
Non-food deflation lessened to 2.7% from the 2.9% in April, while food moved back into deflationary territory in last month at -0.3% as it continues to fluctuate around the zero mark.
“The fact that today’s figures remain deflationary doesn’t come as a great surprise,” Helen Dickinson, chief executive of the British Retail Consortium (BRC).
“We’ve experienced a record run of falling shop prices and, for the time being, there’s little to suggest that’ll end any time soon – so the good news for consumers continues.”
Dickinson added that recent commodity price increases will start to put pressure on retailers to raise their own prices going forward.
“We would normally expect these input costs to filter through to prices eventually, but the big question is how far fierce competition in the industry will insulate consumers from price increases. If retailers do continue to absorb these costs it’ll be more important than ever that other external costs, business rates chief among them, are brought under control,” she said.