Shop price inflation in the United Kingdom increased further in May, driven by supply disruptions and higher energy costs linked to the ongoing conflict involving Iran. Retail industry representatives are now urging the government to take stronger measures to ease financial pressure on businesses and consumers.
According to the latest monthly survey published by the British Retail Consortium (BRC), prices across major UK retailers were 1.2% higher in May compared to the same period last year. This marks an increase from April’s annual inflation rate of 1.0%.
Food Inflation Continues to Ease
Despite the overall rise in retail prices, food inflation showed signs of improvement.
Food prices increased by 2.7% year-over-year in May, down from 3.1% in April. The decline represents the lowest food inflation level recorded in the past twelve months, offering some relief to households facing persistent cost-of-living pressures.
Furniture and Consumer Goods See Largest Price Increases
The biggest price increases were observed in furniture, health, and beauty products.
Industry analysts attribute these rises largely to higher raw material expenses and increased shipping costs, both of which continue to impact supply chains and retailer margins.
Retail Industry Calls for Government Action
Helen Dickinson, Chief Executive of the British Retail Consortium, said government intervention remains necessary to help businesses control rising operational expenses.
Her comments come as UK authorities continue discussions around measures aimed at slowing price growth, including pressure on supermarkets and consideration of temporary price controls.
Dickinson argued that reducing non-commodity charges, taxes, and levies — which account for more than two-thirds of energy bills — could significantly ease inflation pressures. She also emphasized that cutting administrative burdens and excessive regulation would help lower costs for retailers.
UK Inflation Outlook Remains Uncertain
Britain’s official consumer price inflation rate fell to 2.8% in April. However, economists expect inflation to move higher again over the coming months, potentially approaching 4%, as energy market disruptions continue to influence prices across the economy.
The evolving energy situation and geopolitical tensions are likely to remain key factors shaping UK inflation trends throughout the year.
