Strawberries and Ice Cream Lead UK Food Price Inflation to March 2025 Low
UK Shop Price Inflation Trends and Influences in June 2025
LONDON, June 30 (Reuters) - 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.
Overview of Shop Price Inflation
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 Reaches New Low
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.
Non-Food Items and Retail Promotions
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.
Retailers Face Mounting Cost Pressures
"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.
Comparison with Official Consumer Price Inflation
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.
(Reporting by Suban Abdulla; editing by David Milliken)