UK shop price inflation accelerated in May, as retailers pointed to ongoing disruption and higher energy costs linked to the Iran conflict, according to industry data that renewed calls for
government intervention to ease cost pressures.
Figures from the British Retail Consortium (BRC), released on Tuesday, showed shop prices rose 1.2% year-on-year in May, up from a 1.0% increase in April, indicating a gradual uptick in retail inflation across major chains.
Food price inflation continued to ease, slowing to 2.7%—its lowest level in a year—from 3.1% in the previous month. However, other categories saw stronger upward pressure, with furniture alongside health and beauty products recording the steepest increases amid rising raw material and shipping costs.
The BRC said higher energy costs, exacerbated by geopolitical tensions, were feeding through into supply chains and retail pricing.
Helen Dickinson, chief executive of the BRC, urged the government to take further action to help reduce cost burdens on retailers. She argued that ministers should go beyond pressuring supermarkets to restrain price rises and instead address structural costs.
“Reducing the non-commodity charges, taxes and levies that make up more than two-thirds of energy bills, and cutting red tape would help keep inflation down,” Dickinson said.
Broader UK inflation, as measured by the consumer price index, eased to 2.8% in April. However, economists expect it to rise again in the coming months, potentially reaching around 4%, as energy price pressures continue to filter through the economy. Photo by Taunton : ASDA by Lewis Clarke, Wikimedia commons.
