UK industry reports record high shop price inflation in May

LONDON - Shop price inflation in the United Kingdom rose to 9 percent in the year to May, up from 8.8 percent in April, and reaching its highest rate on record, the British Retail Consortium said on Tuesday.

Food inflation, however, slowed to 15.4 percent in May, down from 15.7 percent in April, and was the second highest on record, the BRC added. It attributed the slowdown to lower energy and commodity costs starting to filter through to lower prices of some staples.

"The continued move higher in shop prices in the UK offered a reminder that inflation remains sticky like glue, though there was a glimmer of hope as the surge in food prices eased just a touch," Russ Mould, investment director at online investment platform AJ Bell, said.

The UK has been in the grip of high inflation for more than a year. Households have felt the squeeze amid a worsening cost-of-living crisis. Widespread strikes broke out in summer 2022 and still continue in disputes over pay.