UK Shop Price Inflation Hits 1.2% as Iran War Energy Costs Lift Retail Bills
Updated
Updated · Reuters · May 26
UK Shop Price Inflation Hits 1.2% as Iran War Energy Costs Lift Retail Bills
3 articles · Updated · Reuters · May 26
Summary
UK shop prices rose 1.2% in May from a year earlier, up from 1.0% in April, as retailers said Iran war disruption and higher energy costs pushed inflation higher.
Food inflation eased to 2.7% from 3.1%—its lowest in a year—but furniture and health and beauty prices climbed fastest on rising raw material and shipping costs.
The British Retail Consortium urged the government to cut energy-related taxes, levies and red tape, saying non-commodity charges make up more than two-thirds of power bills.
Britain's official consumer inflation rate fell to 2.8% in April, but retailers expect the energy shock to push it back toward 4% in coming months.
As conflict chokes global trade, are UK interest rate hikes and rising mortgages now inevitable?
With government aid a year away, how will Britain's small businesses survive the current economic storm?
Beyond temporary price hikes, is the global economy entering an era of permanent supply chain uncertainty?
UK Food Inflation Drops Below Average to 2.7% as Strait of Hormuz Crisis Threatens Broader Economic Stability
Overview
In May 2026, UK food price inflation dropped to 2.7%, helped by strong supermarket competition, even as global events kept markets on edge. The ongoing Strait of Hormuz crisis led to sharp declines in oil prices, with Brent crude falling nearly 7% in one day due to hopes for peace in the US-Israeli war on Iran. However, risks of further escalation remain, making energy markets volatile and supply chains uncertain. This mix of easing food inflation and tense global energy conditions highlights the fragile balance facing UK consumers and businesses.