London, United Kingdom. British shop price inflation sped up in May as disruption and higher energy costs linked to the Iran war affected retailers, according to the British Retail Consortium. The group said the government needed to do more to help bring costs down for retailers.
Inflation data
The British Retail Consortium’s monthly survey of major chains, published this week, 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%.
Rising costs
Furniture and health and beauty products rose the most, reflecting higher raw material and shipping costs.
BRC Chief Executive Helen Dickinson said the government, which has pressed supermarkets to slow price increases and has considered demanding price caps this month, had to play its part in reducing 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.
Wider inflation outlook
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 because of the energy price shock.
