FX.co ★ UK Shop Price Inflation Holds at 1.2% in June

UK shop price inflation rose by 1.2% year-on-year in June 2026, matching May’s pace and coming in just below market expectations of a 1.3% increase. Softer food price pressures offset a modest acceleration in non-food inflation. Food inflation eased to 2.4% from 2.7% in May, its lowest rate since March 2025, with fresh food inflation falling to 2.8% from 3.4%. The decline was supported by bumper strawberry harvests, promotional discounts on ice cream, and intense supermarket competition. In contrast, non-food inflation inched up to 0.6% from 0.5%, as retailers cut prices on summer clothing, footwear, and household textiles despite rising underlying costs. BRC Chief Executive Helen Dickinson cautioned that although competition is helping to contain inflation, retailers are grappling with growing cost pressures from higher National Insurance contributions, packaging levies, extreme weather, and geopolitical tensions.