UK Shop Price Inflation Drops to Lowest Level Since 2021

Retailers see easing inflation and increased consumer spending, but challenges remain with food prices and economic uncertainty.

Annual shop price inflation fell to 0.6% in May, the lowest since November 2021.
Non-food items saw a deflation rate of 0.8%, with significant price cuts on furniture and electronics.
Food prices rose by 3.2%, driven by high sugar costs despite a global price drop.
Consumer spending showed signs of recovery, with a net increase in sales volumes reported.
Retailers remain cautious about the future, with concerns over employment and long-term economic stability.