The British Independent Retailers Association has said recent figures from the BRC-Nielsen Shop Price Index are encouraging – but it has questioned the food price hike.

Speaking about the report, which can be downloaded here, BIRA, which works with over 6,000 independent businesses of all sizes across the UK, said that inflation levels falling was an encouraging marker for shoppers.

The report shows shop Price annual inflation decelerated to 8.4% in June, down from 9.0% in May - below the three-month average rate of 8.7% - while shop price growth remains elevated.

Also reported:

• Non-Food inflation decelerated to 5.4% in June, down from 5.8% in May. This is below the 3-month average rate of 5.6%. Inflation remains elevated in this category.
• Food inflation decelerated to 14.6% in June, down from 15.4% in May. This is below the 3-month average rate of 15.2% and is the second consecutive deceleration in the food category.
• Fresh Food inflation slowed further in June, to 15.7%, down from 17.2% in May. This is below the 3-month average rate of 16.8% and inflation in this category remains elevated.
• Ambient Food inflation decelerated slightly to 13.0% in June, down from 13.1% in May. This is in line with the 3-month average rate of 13.0% and is the second fastest rate of increase in the ambient food category on record.

Andrew Goodacre, BIRA CEO said: "It is encouraging to see inflation levels falling across all the sectors, but I am sure we would all like to see it happening much quicker.

"However what I am still struggling to understand is why food inflation is 300% more than non-food? We understand that food inflation is being blamed on supply chain costs, and yet non-food products / retailers are experiencing the very same pressures. This is important because the high level of food inflation, seen as essential purchases, is detrimental to consume confidence and impacts on the discretionary expenditure, which in turn is the lifeblood of thousands of independent retailers."