UK shop price inflation picks up, retailers ask government to help

Reuters
By Reuters May 27, 2026 12:08 (EAT)
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UK shop price inflation picks up, retailers ask government to help

Britain's Prime Minister Keir Starmer speaks at the engineering workshop at Coleg Menai during his visit to announce Wylfa on Anglesey, an island in North Wales, as the location for the country’s first small modular reactor, in Llangefni, Wales on November 13, 2025. (Photo by Temilade Adelaja / POOL / AFP)

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 British shop price inflation sped up in May on the back of disruption and ​higher energy costs caused by the Iran ‌war, according to a retail industry group which said the government had to do more to keep costs ​down.

The British Retail Consortium's monthly survey of ​major chains published on Tuesday showed that ⁠prices in May were 1.2% higher than a ​year earlier, up from a 1.0% rise in ​April.

Food price inflation slowed to 2.7%, its lowest in a year, from 3.1%.

Furniture and health and beauty products rose ​by the most reflecting rising raw material and ​shipping costs.

BRC Chief Executive Helen Dickinson said the government - which ‌has ⁠pressed supermarkets to slow price increases and flirted with the idea of demanding price caps this month - had to play its part in bringing ​down costs ​for retailers.

"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.

Britain's broader official consumer price inflation index fell to 2.8% in April but ⁠is ​expected to rise again to ​around 4% in the coming months due to the energy ​price shock.

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