UK retail inflation rises as cost pressures mount
Complete. Here is the key summaryUK shop price inflation increased to 1.2% in May, influenced by rising energy costs and supply chain issues. Retailers are struggling to absorb these costs, making it difficult to maintain low prices. The industry anticipates that inflation will remain persistent into 2026, with ongoing external pressures affecting pricing.
Inflation ticks higher: UK shop price inflation rose to 1.2% in May, driven by energy costs and supply chain disruption. Retailers under strain: Businesses are absorbing costs where possible, but warn that sustained pressures make holding prices low harder. Outlook stays tough: Industry expects inflation to remain 'sticky' in 2026, with external shocks feeding into prices.