UK SHOP price inflation rose in May as disruption and higher energy costs linked to the Iran war pushed up prices, according to a retail industry group which urged the government to do more to reduce costs.
The British Retail Consortium’s monthly survey of major retail chains, published on Tuesday, showed prices in May were 1.2 per cent higher than a year earlier, up from a 1.0 per cent rise in April.
Food price inflation slowed to 2.7 per cent from 3.1 per cent, marking its lowest level in a year.
Furniture and health and beauty products recorded the biggest increases, reflecting higher raw material and shipping costs.
BRC chief executive Helen Dickinson said the government, which has pressed supermarkets to slow price rises and considered price caps earlier this month, also needed to help reduce costs for retailers.
“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.
Britain’s wider consumer price inflation index fell to 2.8 per cent in April but is expected to rise again to around 4 per cent in the coming months because of the energy price shock.
(With inputs from Reuters)
