London pre-open: Stocks seen up; shop price inflation eases
London stocks were set to rise at the open on Tuesday following a mostly positive session in Asia.
The FTSE 100 was called to open 22 points higher at 7,475.
Investors will be digesting the latest data from the British Retail Consortium and NielsenIQ, which showed that shop price inflation eased in June, to 8.4%. from 9.0% in May.
Food inflation eased to 14.6% from 15.4%.
BRC chief executive Helen Dickinson said: "Households up and down the country will welcome the easing of shop price inflation in June. Food inflation slowed for the second consecutive month, particularly for fresh products, as retailers cut the price of many staples including milk, cheese and eggs. Clothing and electrical goods also saw falling prices, helping customers to pick up a bargain ahead of the summer holidays.
"If the current situation continues, food inflation should drop to single digits later this year. However, it is imperative that government does not hamper this progress by introducing costly new policies."
In corporate news, sportswear retailer JD Sports Fashion maintained annual guidance despite a slowing of sales growth in May and softening in the US market.
The company said it still expected full-year profit to pass £1bn after positive trading in all regions through May with overall growth in organic sales of around 8%, compared with 15% in the first three months of the year.
"This moderation in the growth was in line with management expectations and reflects tougher comparatives in the prior year as the supply chain normalised and the availability of product improved," it added.
The group’s UK, Europe and Asia Pacific businesses were also performing well, partly offset by operations in North America which were "experiencing some softening in trade consistent with other businesses in the sector".
"Inventories in our businesses in North America are at normal levels and we will be no more promotional than we need to be to remain competitive," JD Sports said.