LONDON, July 2 Reuters Prices in British shops rose at the slowest pace in almost three years last month, according to industry figures that underscore how inflation has cooled even if Prime Minister Rishi Sunak is unlikely to see much benefit in this week39;s national election.

Annual shop price inflation slowed to 0.2 in June from 0.6in May, the smallest increase since October 2021, the British Retail Consortium said on Tuesday.

Prices for nonfood goods fell by 1.0 in annual terms after a 0.8 drop in May helped by promotions on TV sets timed to coincide with the Euro 2024 soccer tournament while food inflation slowed for a 14th month in a row to 2.5 from 3.2.

This will be of help to shoppers as they plan their household budgets for essential goods and services, said Mike Watson, head of retailer and business insight at NielsenIQ, which provides data for the BRC.

With uncertainty around discretionary spending, we expect the intense competition across the marketplace to keep price increases as low as possible this summer.

Sunak has sought to claim credit for the fall in headline inflation which topped 11 in 2022 and returned in May to the Bank of England39;s 2 target. But opinion polls suggest his Conservative Party will lose heavily to the opposition Labour Party in Thursday39;s election.

The BoE is assessing whether price pressures have abated sufficiently for it to cut interest rates for the first time since 2020. However, with inflation in the services…