Key facts
- UK shop price inflation slowed to 0.9% in July, the lowest since December 2025.
- Food price inflation decreased to 2.2% from 2.4%.
- Non-food inflation slowed to 0.2% from 0.6%.
- Retailers offered summer promotions to limit price increases.
Average prices at British retailers rose by an annual 0.9% in July, marking the smallest increase since December 2025, according to the British Retail Consortium (BRC). This slowdown was attributed to retailers competing with summer promotions, including discounts on alcohol and snacks linked to the men's soccer World Cup. Food price inflation eased to 2.2% from 2.4%, its lowest point since February 2025. Non-food inflation also slowed to 0.2% from 0.6%, although prices for electrical and health and beauty products saw increases due to higher semiconductor and manufacturing costs. The BRC survey collected price data between July 1 and July 9. For comparison, the Office for National Statistics' broader consumer price inflation measure fell to a 15-month low of 2.6% in June. The Bank of England has forecast that CPI will rise to just over 3.25% later this year, driven by higher energy costs.