UK retailers and other businesses are becoming less likely to raise prices, according to new data from the Office for National Statistics (ONS), offering a sign that pricing pressures may be easing despite continued concerns over energy and operating costs.
The latest Business Insights and Conditions Survey found that 20% of UK trading businesses expect to increase the prices of their goods or services in June 2026. That is seven percentage points lower than the 28% recorded for May, although still above the levels reported in June 2025 and June 2024.
The findings suggest that many businesses are taking a more cautious approach to pricing after a period of rising costs and economic uncertainty.
The wholesale and retail trade sector remains among the industries most likely to increase prices, with 30% of businesses expecting to do so in June. Only manufacturing reported a higher proportion, at 32%.
Fewer businesses planning price rises
The ONS survey points to a broader moderation in price expectations across the UK economy. While one in five businesses still expects to raise prices, the figure marks a notable decline from the previous month.
The data also shows that businesses have historically tended to overestimate future price increases. Since April 2022, the proportion expecting to raise prices has consistently exceeded the proportion that later reported doing so.
Retailers continue to face cost pressures, but the latest figures indicate that fewer businesses believe higher selling prices will be necessary in the near term. At the same time, 41% of trading businesses said they were not considering any price increases in June, up from 36% in the previous survey period.
The findings come as UK retail sales and consumer demand remain fragile. Separate surveys from the Confederation of British Industry have shown that retailers continue to report weak consumer spending despite some improvement from earlier lows.
Energy costs remain a concern
Although fewer businesses are planning price rises, cost pressures have not disappeared.
Energy prices were the most frequently cited reason for considering higher prices, mentioned by 28% of businesses. While this was down from 34% in May, it remained one of the highest readings since mid-2023. Labour costs were cited by 24% of businesses, while raw material costs and transportation expenses were each mentioned by 21%.
Among larger businesses with 10 or more employees, labour costs were the leading factor, cited by 43% of respondents. Energy prices followed at 36%.
The survey also found that 60% of businesses remained concerned about energy prices. The accommodation and food service sector reported the highest level of concern, highlighting the continued impact of utility costs across customer-facing industries.
Retail sector faces mixed outlook
Despite signs of greater pricing restraint, the retail sector continues to operate in a challenging environment.
The ONS reported that 27% of trading businesses experienced lower turnover in April compared with the previous month, while economic uncertainty remained the most commonly reported challenge affecting business performance.
Supply chain issues have also persisted. Seven per cent of businesses reported global supply chain disruption during April, with nearly half of those affected citing conflict in the Middle East as a contributing factor.
Recent industry surveys suggest retailers are balancing weak consumer demand against rising operating costs. Retailers have been increasing prices at a slower pace than earlier in the year, reflecting competitive pressures and cautious household spending.
For the global retail sector, the latest UK figures indicate a market where inflationary pressures remain present but are no longer accelerating at the pace seen in previous months.
Businesses continue to monitor energy, labour and supply chain costs, yet many appear increasingly reluctant to pass those costs directly on to consumers.
