UK shop prices rose by 1.2% in June 2026 compared with a year earlier, unchanged from May, as summer discounting helped offset wider cost pressures across the retail sector.
The latest BRC-NIQ Shop Price Index shows that promotions across food and non-food categories played a key role in keeping overall retail inflation stable.
The data suggests a mixed pricing environment, where easing food inflation contrasts with slightly firmer non-food prices. Retailers continued to rely on discounting to support sales during the summer trading period, particularly as weather conditions boosted demand for seasonal goods.
Food prices ease
Food inflation slowed further in June, reflecting improved supply conditions and strong competition between supermarkets.
Overall food prices were 2.4% higher than a year earlier, down from 2.7% in May. Fresh food inflation saw a more noticeable decline, easing to 2.8% from 3.4%.
The British Retail Consortium (BRC) said seasonal availability helped reduce pressure on prices. Helen Dickinson, chief executive of the BRC, said retailers had helped shoppers during peak summer demand.
“Food price growth eased,” she said, adding that retailers supported demand for summer products such as strawberries and ice cream “thanks to bumper crops and strong competition”.
Data partner NIQ noted that promotions in fresh produce and seasonal grocery categories were a key factor in keeping prices down for households during warmer weather.
Non-food sees slight rise
Non-food inflation edged up to 0.6% in June from 0.5% in May, although it remained relatively subdued compared with earlier periods of higher inflation.
Retailers increased promotional activity across clothing, footwear and seasonal household goods. However, these discounts were not enough to fully offset underlying cost increases in some areas.
Helen Dickinson said retailers adjusted quickly to changing weather patterns, with promotions supporting summer demand.
“In clothing and general merchandise, retailers responded to the hot weather with promotions across summer essentials in clothing, footwear and lighter household textiles,” she said.
This reflects continued price competition in discretionary retail categories, where discounting remains a key tool for attracting shoppers.
Cost pressures persist
Despite stable overall inflation, retailers continue to report rising structural costs. These include higher employment costs, packaging-related taxes and energy-related pressures affecting supply chains.
The BRC warned that these factors could limit the ability of retailers to sustain current pricing levels over time, even as short-term inflation remains stable.
Helen Dickinson highlighted multiple cost drivers facing the sector, including “higher National Insurance, the triple packaging tax and higher input costs from extreme weather and geopolitical tensions”.
The findings underline a continuing balance in UK retail: promotional activity is helping to keep prices stable for now, but underlying cost pressures remain a challenge for retailers heading into the second half of the year.
