LONDON -- British annual shop price inflation remained unchanged in June as food inflation lost steam and consumers took advantage of summer deals despite a surge in energy prices caused by the war in Iran, an industry survey showed on Tuesday. The British Retail Consortium’s monthly survey of major chains showed that overall shop prices this month were 1.2% higher than a year earlier, the same as in May. Food price inflation slowed to 2.4%, its lowest since March 2025, from 2.7%. Fresh food inflation fell to 2.8% year-on-year in June compared to 3.4% in May, helped by bumper crops of strawberries and promotions on ice cream as much of Britain experienced unusually hot weather.
The BRC said that although retailers offered promotions on items such as clothing and footwear as the weather warmed up, overall prices for non-food items rose by 0.6% compared to 0.5% in May. "While a competitive market is keeping inflation in check for now, retailers face mounting cost pressures, including higher National Insurance, the triple packaging tax and higher input costs from extreme weather and geopolitical tensions," BRC Chief Executive Helen Dickinson said.
The BRC’s inflation measure, based on data collected between June 1 and June 7, covers a narrower range of goods than Britain’s official consumer price inflation, which held at April’s 13-month low of 2.8% in May.