Food and non-food price growth both eased as summer promotions and supermarket discounting offset higher semiconductor and manufacturing costs, the British Retail Consortium said.
UK shop price inflation rose 0.9% year-on-year in July 2026, undershooting market expectations for a 1.2% increase and marking the slowest annual gain since December 2025. The reading also cooled from 1.2% in June as retailers leaned on summer promotions and supermarket discounts to restrain price growth. Food inflation slowed to 2.2%, its lowest since February 2025, from 2.4% a month earlier, while non-food inflation eased to 0.2% from 0.6%. Shop prices fell 0.1% on a monthly basis. The British Retail Consortium said discounting intensified for alcohol, snacks, clothing and footwear during the men's soccer World Cup and seasonal sales. BRC Chief Executive Helen Dickinson said fierce competition is still limiting retailers' ability to raise prices even as operating costs continue to climb.