Overview

• Overall shop prices rose 0.4% year-on-year in June, marking the first increase since July 2024.
• Food inflation accelerated to 3.7%, its fastest pace since March 2024, according to the BRC-NIQ Shop Price Index.
• Higher wholesale costs, rising labour expenses from April’s employer social security and living wage hikes, and hot, dry weather reduced harvest yields and drove up fresh produce prices.
• Non-food goods remained in deflation at 1.2%, with retailers slowing price cuts especially on DIY and gardening items.
• The Bank of England kept interest rates at 4.25% in June with analysts warning that sustained price rises could curb consumer spending later in the year.