BRC: Household Budgets Under Pressure As Shop Price Inflation Rises

The BRC has published shop price inflation data for July, covering the period 01 – 07 July 2025.

• Shop price inflation increased to 0.7% year on year in July, against growth of 0.4% in June. This is above the 3-month average of 0.3%.
  
  
• Non-Food inflation increased to -1.0% year on year in July, against a decline of -1.2% in June. This is above the 3-month average of -1.2%.
  
  
• Food inflation increased to 4.0% year on year in July, against growth of 3.7% in June. This is above the 3-month average of 3.5%.
  
  
• Fresh Food inflation decreased to 3.2% year on year in July, against growth of 3.2% in June. This is above the 3-month average of 2.9%.
  
  
• Ambient Food inflation increased to 5.1% year on year in July, against growth of 4.3% in June. This is above the 3-month average of 4.2%. 

Note: Month-on-month % change refers to changes in the level of prices. 

Helen Dickinson, Chief Executive of the BRC, said:
“Families will have seen their food bills increase as food price inflation rose for the sixth consecutive month. Staples such as meat and tea were hit the hardest as wholesale prices for both categories have been hit by tighter global supplies. This has helped push up overall shop prices. There were a few bright spots, with discounts in fashion and furniture offering consumers a chance to refresh their wardrobe and homes.

“If the government wants to support struggling families, it must think carefully about the next Budget. Retailers are doing everything possible to protect their customers from the worst of the inflationary pressures, but the £7bn cost to retail of last year’s Budget forced most retailers to raise prices. Further tax rises will ultimately hurt households, locking in inflation and forcing people to pay higher prices to put food on the table.”

Mike Watkins, Head of Retailer and Business Insight, NIQ, said:
“Consumers’ household budgets are coming under pressure with the food  retailers now seeing price increases above CPI. However, price competition helped by promotional activity will still mean that shoppers can save money by shopping around. With inflation on the up, high street retailers will also be concerned about customer retention over the summer holiday season if they are to maintain sales momentum."

Source : BRC

Image : Tero Vesalainen / Shutterstock / 1032154933

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