Key facts
- Overall shop price inflation in the UK was unchanged at 1.2% in June compared to a year earlier.
- Food price inflation slowed to 2.4% in June, the lowest rate since March 2025.
- Fresh food inflation decreased year-on-year in June, aided by promotions on strawberries and ice cream.
- Prices for non-food items increased by 0.6% in June, a slight rise from 0.5% in May.
- Retailers are experiencing mounting cost pressures from taxes and input costs.
British annual shop price inflation held steady in June, with the British Retail Consortium (BRC) reporting no change from May's 1.2% year-on-year increase. This stability was largely attributed to a slowdown in food price inflation, which fell to 2.4%, its lowest point since March 2025. Fresh food prices specifically saw a year-on-year increase of 2.8% in June, down from 3.4% in May, benefiting from abundant strawberry harvests and promotional offers on ice cream amid warm weather.
Despite these food price moderations, prices for non-food items saw a slight increase, rising by 0.6% compared to 0.5% in May, as retailers offered summer deals on clothing and footwear. The BRC highlighted that retailers are facing significant cost pressures, including higher National Insurance contributions, packaging taxes, and increased input costs stemming from extreme weather events and geopolitical tensions. The BRC's inflation measure, collected between June 1 and June 7, covers a narrower scope than the official Consumer Price Index (CPI), which had previously held at a 13-month low of 2.8% in May.