# UK shop price inflation strikes new record high: BRC
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-05-30
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: UK Shop Price Inflation Hits Record High: BRC
Meta Description: Shop prices in UK surged 9.0% as food inflation cooled slightly. BRC data shows the highest rate since 2005. Analysis by Andy Bruce.
URL: https://financedigest.com/uk-shop-price-inflation-strikes-new-record-high-brchtml

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# UK shop price inflation strikes new record high: BRC

By Andy Bruce

LONDON (Reuters) – British shop price inflation picked up this month to reach its highest rate since industry records began in 2005, although growth in food prices cooled slightly, a survey showed on Tuesday.

The British Retail Consortium said prices in supermarkets and retail chains rose 9.0% in the year to May, after an 8.8% increase in April.

[Food price](https://www.financedigest.com/world-food-prices-fall-to-two-year-low-in-may-un-food-agency.html "World food prices fall to two-year low in May – UN food agency") inflation as measured by the BRC slowed, however, to 15.4% from 15.7%.

While overall shop price inflation rose slightly in May, households will welcome [food inflation beginning to fall,”](https://www.financedigest.com/uk-retailers-report-record-food-inflation-but-see-falls-ahead.html "UK retailers report record food inflation but see falls ahead") said BRC chief executive Helen Dickinson. The slow in (food) [inflation was largely driven by lower energy](https://www.financedigest.com/uk-energy-bill-help-wont-lower-inflation-statisticians-rule.html "UK energy bill help won’t lower inflation, statisticians rule") and commodity costs starting to filter through to lower prices of some staples including butter, milk, fruit and fish,” she added.

The figures follow official data last week that showed annual [consumer price](https://www.financedigest.com/tesco-reported-to-competition-watchdog-by-consumer-group-over-pricing-concerns.html "Tesco reported to competition watchdog by consumer group over pricing concerns") inflation – which includes services and non-shop goods like energy – slowed in April, but by less than expected, to 8.7% from 10.1%.

Official [food price inflation](https://www.financedigest.com/with-uk-food-price-inflation-at-46-year-high-lawmakers-launch-probe.html "With UK food price inflation at 46-year high, lawmakers launch probe"), which earlier this year rose to its highest rate since 1977, slowed only marginally to 19.1% from 19.2%.

While there is reason to believe that food inflation might be peaking, it is vital that [government](https://www.financedigest.com/internet-data-growth-has-not-pushed-up-telcos-network-costs-dutch-government-says.html "Internet data growth has not pushed up telcos’ network costs, Dutch government says") does not hamper this early progress by piling more costs onto retailers and forcing up the cost of goods even further,” Dickinson said.

The biggest risk comes from policies such as the incoming [border checks](https://www.financedigest.com/uk-plans-streamlined-post-brexit-border-checks.html "UK plans streamlined post-Brexit border checks") and reforms to packaging recycling fees.

The BRC data was based on prices collected between May 1 and May 7.

(Reporting by Andy Bruce; editing by David Milliken)


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