UK shop price inflation rose 0.9% year-on-year in July 2026, below market expectations of a 1.2% increase and marking the slowest pace of growth since December 2025. The rate also eased from 1.2% in June, as extensive summer promotions and supermarket discounts tempered overall price pressures.
Food price inflation slowed for a sixth consecutive month, edging down to 2.2% from 2.4% in June, its lowest level since February 2025. Non-food inflation also moderated, slipping to 0.2% from 0.6%, even as prices for electrical goods, health products, and beauty items rose on the back of higher semiconductor and manufacturing costs.
On a monthly basis, shop prices declined 0.1%. According to the British Retail Consortium, retailers stepped up discounting on alcohol, snacks, clothing, and footwear during the men's soccer World Cup and the summer sales period. BRC Chief Executive Helen Dickinson said intense competition continues to cap price increases, although retailers remain under strain from rising operating costs.
