UK Shop Price Inflation Increases in May, Retailers Call for Government Support
Rising Shop Prices and Industry Response
Overview of May Inflation Data
LONDON, May 26 (Reuters) - British shop price inflation sped up in May on the back of disruption and higher energy costs caused by the Iran war, according to a retail industry group which said the government had to do more to keep costs down.
The British Retail Consortium's monthly survey of major chains published on Tuesday showed that prices in May were 1.2% higher than a year earlier, up from a 1.0% rise in April.
Food and Non-Food Price Trends
Food price inflation slowed to 2.7%, its lowest in a year, from 3.1%.
Furniture and health and beauty products rose by the most reflecting rising raw material and shipping costs.
Retailers' Calls for Government Action
Statements from Industry Leaders
BRC Chief Executive Helen Dickinson said the government - which has pressed supermarkets to slow price increases and flirted with the idea of demanding price caps this month - had to play its part in bringing down costs for retailers.
Proposed Measures to Reduce Inflation
"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.
Broader Economic Context
Impact on Consumer Price Index
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 due to the energy price shock.
(Writing by William Schomberg; editing by Suban Abdulla)
