Shop price inflation accelerated in May as disruption linked to the Iran conflict and higher energy costs pushed up pressure on retailers.

Prices were 1.2 per cent higher in May than a year earlier, up from 1 per cent in April, according to the British Retail Consortium’s latest monthly shop price index.

The rise came as retailers faced higher raw material, shipping and energy costs, with furniture and health and beauty products among the categories recording the sharpest price increases.

However, food inflation slowed to 2.7 per cent in May, down from 3.1 per cent in April and its lowest level in a year.

The BRC said wider disruption and the impact of higher costs meant retailers needed more support from government to keep prices down for shoppers.

BRC chief executive Helen Dickinson said: “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.”

Her comments come after the government reportedly pressed supermarkets to slow price increases and considered asking grocers to introduce price caps on essential items earlier this month.

Retailers have pushed back against such proposals, arguing that supermarkets are already operating in a highly competitive market and that policy-driven costs are contributing to inflation.

The latest shop price figures come after official consumer price inflation fell to 2.8 per cent in April. However, the wider rate is expected to rise again in the coming months, with economists warning it could move towards 4 per cent as energy costs feed through.

The BRC’s figures suggest that while food inflation has eased, pressure on non-food categories is building as global disruption continues to hit supply chains and operating costs.

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