UK Shop Price Inflation Slows Down to 0.9 Percent in July

UK shop price inflation slowed down significantly in July 2026, reaching an annual rate of 0.9 percent. This marks a new low since December 2025, according to data from the British Retail Consortium (BRC). The main reason behind this slowdown is the discounts offered by supermarkets on alcohol and snacks during the men's soccer World Cup.

The BRC survey collected pricing data between July 1 and July 9 across various retail categories. Food inflation dropped to 2.2 percent, while non-food inflation slowed down to 0.2 percent despite cost increases for electronics and beauty items. Clothing and footwear retailers also discounted summer lines to attract shoppers.

The price trends align with broader economic metrics, as the Office for National Statistics reported consumer price inflation fell to 2.6 percent in June. Meanwhile, the Bank of England projected that broader inflation could reach over 3.25 percent later this year due to elevated energy costs. BRC Chief Executive Helen Dickinson said that retailers competed hard to limit price rises.