Britain’s next government is set to benefit from a decrease in inflation and fuel prices, providing relief for household finances. The British Retail Consortium reported a cooling of shop price inflation to 0.2%, with retailers cutting prices of key products like butter and coffee. Additionally, petrol and diesel prices fell, although they are still considered “too expensive” by many.
Sainsbury’s experienced a slowdown in sales despite a surge in TV purchases during Euro 2024, with a drop in its Argos chain contributing to the decline. Food sales growth eased as inflation stabilized, and general merchandise sales, especially electronics, suffered.
Analysts note Sainsbury’s strong grocery performance, offset by weaker general merchandise sales. Future growth is expected to pick up with improving weather and consumer conditions. The supermarket chain remains optimistic about its financial outlook, expecting an increase in retail operating profit.
As Eurozone inflation figures for June are anticipated to show a slight decrease, key events like speeches from central bankers will shape market dynamics throughout the day.
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