News that shop prices are on the decline will come as welcome relief to families during what are difficult economic times for us all.
The British Retail Consortium (BRC) has reported that the overall shop price inflation slowed to 1.1% in June from 1.5% in May, its lowest level in two-and-a-half years. Food inflation also fell, to 3.5% from 4.3%.
This is good news for the holes in our pockets as it means lower bills on our weekly shop and other essentials like school items and uniform for the kids.
A fall in crude oil prices by almost a quarter on three months ago is largely responsible for the slump, as is the sharp decrease in the cost of food commodities such as coffee and sugar.
Mike Watkins, senior manager of retail services at Nielsen, a retail measurement company, said: "Prices continue to fall across retail stores which will be welcome news for the many households needing to make savings on bills and bigger-ticket items."
Weak demand and aggressive competition between retailers is forcing them to cut prices even further by offering discounts and special deals, passing even more savings onto us!
In June, fresh food prices increased by 3.2% compared to 3.9% in May, due to lower rates for vegetables, oils and fats, milk, cheese and eggs.
This helped to balance out a rise in the rate of inflation for fish and convenience food.
Some of the biggest falls were to be found on long shelf-life items such as alcoholic beverages, breads and cereals, jams and chocolate. For the best prices on your family's supermarket essentials this week, check out our Best Buys table.
The price of non-food goods such as clothing and footwear, electricals, DIY, and hardware, dropped by 0.3% in June compared to 0.1% in May. For the week's best deals and discounts, take a look at our round-up of all the best offers currently available on your shopping essentials (or treats!).
This contraction is partly down to a combination of summer sales and the low price of cotton, which has fallen by 43% over the last year. Prices for accessories and kids' clothes fell the most.
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