UK inflation eases in June reflecting retailer investment

New figures from the British Retail Consortium (BRC) have revealed a slight increase in shop price annual inflation, which eased to 0.2 percent in June, down from 0.6 percent in May.

This also came below the three-month average rate of 0.5 percent, making shop price annual growth its lowest since October 2021.

CEO of the BRC, Helen Dickinson, said in a release that the improvement reflected retailers’ decisions to heavily invest in improving their operations and supply chains to compensate for the impact of global shocks.

From the perspective of Dickinson, the figures, which come ahead of this week’s general election on Thursday, should serve as a reminder that heightened consumer prices are a consequence of increased business costs.

She added: “The next Government must address some of the major cost burdens weighing down the retail industry, including the broken business rates system, and inflexible apprenticeship levy. By doing so, retailers can invest in lower prices for the future – helping to reduce the cost of living pressures that many families face.”