Representational file photo.
London: Food prices in Britain rose 2.8 percent year-on-year in May, marking the fourth consecutive monthly increase, data from the British Retail Consortium (BRC) showed Tuesday.
The rate was up 0.2 percentage points higher than in April and exceeded the three-month average, according to the BRC.
Fresh food was the main driver for the rise, BRC Chief Executive Helen Dickinson said, adding that non-food prices remained in deflation but slowed in categories such as fashion and furniture as retailers scaled back promotional activity.
Prices were falling faster for electricals as retailers tried to encourage spending before any potential knock-on impact from U.S. tariffs, she added.
Overall shop prices dropped 0.1 percent year-on-year in May, compared to a 0.2 percent fall in the three-month average. Non-food prices declined by 1.5 percent, slightly less than the average decrease of 1.6 percent.
Dickinson warned that retailers are facing mounting operational pressures. If statutory costs continue to rise for retailers, households will have to brace themselves for more difficult times ahead as prices rise faster.
Mike Watkins, head of retailer and business insight at NielsenIQ, said consumer confidence remains fragile amid persistent inflation.
Britain's Consumer Prices Index rose by 3.5 percent in April year-on-year, marking the highest annual rate since January 2024, earlier data showed.
