UK Shop Price Inflation Drops to Seven-Month Low Amid Supermarket Discounts
Overview of Recent Inflation Trends in the UK Retail Sector
Supermarket Discounts and Promotional Activity
LONDON, July 28 (Reuters) - Average prices at British retailers rose by an annual 0.9% this month, the smallest increase since December 2025, as the men's soccer world cup triggered supermarket discounts on alcohol and snacks, the British Retail Consortium said on Tuesday.
"Retailers competed hard to limit prices rises, with a wave of summer promotions across food and other goods," BRC Chief Executive Helen Dickinson said, adding that some clothing and footwear retailers were also discounting summer items.
Key Inflation Figures and Sector Breakdown
BRC Shop Price Inflation Data
• BRC annual shop price inflation fell to 0.9% in July from 1.2% in June after a 0.1% drop on the month
Food and Non-Food Price Trends
• Food price inflation slowed to 2.2% from 2.4%, its lowest since February 2025
• Non-food inflation slowed to 0.2% from 0.6%, though electrical and health and beauty product prices rose due to higher semi-conductor and manufacturing costs
Survey Methodology and Broader Economic Context
• The BRC survey was based on prices collected between July 1 and July 9
• The Office for National Statistics' broader consumer price inflation measure fell to a 15-month low of 2.6% in June
• Last month the Bank of England forecast CPI would rise to just over 3.25% later this year due to higher energy costs caused by the U.S.-Iran war
Reporting and Editorial Credits
(Reporting by David Milliken, editing by Andy Bruce)
