UK Shop Price Inflation Holds at 1.2% in June
2026-06-29 23:23
By
Joshua Ferrer
1 min. read
UK shop price inflation increased by 1.2% year-on-year in June 2026, the same pace as in the previous month and slightly below market forecasts for a 1.3% rise, as easing food price pressures offset a modest pickup in non-food inflation.
Food inflation slowed to 2.4%, the lowest since March 2025, from 2.7% in May, with fresh food inflation dropping to 2.8% from 3.4%, supported by bumper strawberry crops, promotions on ice cream, and strong supermarket competition.
Meanwhile, non-food inflation edged up to 0.6% from 0.5%, as retailers discounted summer clothing, footwear, and household textiles despite higher underlying costs.
BRC Chief Executive Helen Dickinson warned that while competition continues to keep inflation in check, retailers face mounting cost pressures from higher National Insurance contributions, packaging taxes, extreme weather, and geopolitical tensions.