British shop price inflation accelerated in May as retailers faced higher energy and supply chain costs linked to the Iran conflict, according to new data from the British Retail Consortium.
The BRC’s monthly survey of major retailers showed shop prices were 1.2% higher than a year earlier in May, compared with annual inflation of 1.0% in April.
Furniture, health and beauty products recorded some of the sharpest price increases as businesses grappled with rising raw material expenses, shipping disruption and higher energy costs.
Helen Dickinson, chief executive of the British Retail Consortium, said the government needed to do more to help control operating costs for retailers. She argued that reducing taxes, levies and non-commodity charges attached to energy bills — which account for more than two-thirds of total energy costs — would help ease inflationary pressure.
The comments come as the government continues to monitor rising consumer prices closely and has previously discussed measures aimed at limiting food and retail inflation.
Although Britain’s official consumer price inflation rate fell to 2.8% in April, economists expect inflation to rise again toward 4% later this year as the impact of higher global energy prices feeds further into the economy.
