Britain’s shop price inflation accelerated in May as retailers faced mounting pressure from supply disruptions and surging energy costs linked to the Iran war, prompting fresh calls for government support to ease the burden on businesses and consumers.
A monthly survey released Tuesday by the British Retail Consortium (BRC) showed that prices across major retail chains increased by 1.2% in May compared with the same period last year, higher than the 1.0% annual rise recorded in April.
The report highlighted the growing impact of higher shipping expenses and energy related costs on the retail sector, even as some categories showed signs of easing inflation.
Food inflation slowed to 2.7% in May from 3.1% in April, marking its lowest level in a year. Meanwhile,prices for furniture, health, and beauty products recorded some of the sharpest increases due to rising raw material and transportation costs.
BRC Chief Executive Helen Dickinson said the government needed to take stronger steps to reduce operating costs for retailers, warning that businesses were under increasing strain.
According to Dickinson, lowering non-commodity charges, taxes, and levies which account for more than two-thirds of energy bills alongside reducing regulatory burdens would help curb inflationary pressure.
The comments come after the government increased pressure on supermarkets to limit price hikes and reportedly considered introducing price caps earlier this month.
Britain’s wider consumer price inflation rate dropped to 2.8% in April, but economists expect inflation to climb again in the coming months, potentially reaching around 4% as energy price shocks continue to affect the economy.
Goodness Anunobi
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