Health & beauty drives shop price inflation higher in May
Shop price inflation rose to 1.2% year-on-year in May, up from 1% in April and above the three-month average of 1.1%, according to the latest BRC-NIQ Shop Price Monitor.
The increase was driven largely by non-food categories, particularly health & beauty and furniture, where prices saw the sharpest rises amid higher raw material and shipping costs.
Non-food inflation moved into positive territory, rising to 0.5% in May from a -0.1% fall in April, also above the three-month average of 0.1%.
Food inflation, by contrast, eased to 2.7% in May from 3.1% in April, coming in below its three-month average of 3.1%, reflecting a slowdown in price growth across essential goods.
Helen Dickinson, Chief Executive of the BRC, said: "Shop price inflation edged up in May as non-food prices rose. Furniture and health & beauty saw the sharpest increases, driven by rising raw material and shipping costs. While retailers work hard to keep prices down for customers, they continue to face significant cost pressures, including higher energy bills and disruption linked to the conflict in Iran.
"Businesses cannot absorb these costs indefinitely, which risks pushing prices higher in the months ahead. To help protect households, Government should take action to reduce business costs. Reducing the non-commodity charges, taxes and levies that make up more than two-thirds of energy bills, and cutting red tape would help keep inflation down."
