Inflation in UK Shops Falls Close to Zero as Crisis Eases.

Inflation in UK stores has fallen close to zero, indicating a decrease in pressure on household budgets. Shop prices were only 0.2% higher in June, down from 0.6% in May, due to heavy discounting of general merchandise items and a decline in food price inflation. Food price inflation is now at its lowest level since December 2021, helped by falling prices for key grocery items. This decrease in inflation is expected to prompt the Bank of England to ease policy, with a potential interest rate cut in August. Despite unseasonal weather, lower inflation has kept volume growth strong for J Sainsbury Plc in the first quarter. [Extracted from the article]