UK shop prices hit highest level since April ’24

British shop prices rose by 0.7 per cent in the 12 months to July, the highest increase since April 2024, driven by a sharp uptick in food costs, the British Retail Consortium (BRC) said on Tuesday, according to Reuters.

Food prices jumped by 4.0 per cent, up from 3.7 per cent in June, marking the sixth consecutive monthly rise and the strongest pace since February. The BRC said staples like meat and tea saw the steepest gains due to global supply constraints.

BRC Chief Executive Helen Dickinson said families “will have seen their food bills increase,” despite discounting in categories such as fashion and furniture.

The data adds pressure on the Bank of England ahead of its August 7 rate decision. While another rate cut is expected—its fifth since August 2024—the central bank faces a challenge balancing inflation risks, with the headline rate hitting 3.6 per cent in June and expected to peak around 3.7 per cent in September.

Additional figures from Worldpanel last week showed grocery inflation at 5.2 per cent in the four weeks to July 13. Meanwhile, the Confederation of British Industry reported retail sales falling for a tenth straight month in July, underlining the strain on consumers.

Attribution: Reuters

Subediting: M. S. Salama