UK consumers likely to face higher prices for many months to come'

Higher UK prices may continue through summer even if US-Iran ceasefire talks succeed. Global shipping disruption and higher energy and raw material prices have increased costs for UK companies, with effects already reaching consumer checkout prices. Shop price inflation rose to 1.2% year on year in May, above the three-month average of 1.1%, with furniture and health and beauty products among the biggest movers. The British Retail Consortium cited high oil prices and the prolonged closure of the Strait of Hormuz as key drivers. Food price inflation fell to 2.7% in May due to intense supermarket competition. Retailers are using promotions, including World Cup-related deals, but businesses say they cannot absorb cost pressures and want stronger government support.

"Higher prices could persist over the summer even if ceasefire talks between the US and Iran bear fruit, consumers have been warned, with economic shock waves likely to be felt for many months to come. Disruption to global shipping, coupled with soaring prices for energy and raw materials, have driven up costs for UK companies, with the impact already filtering through to prices paid at the tills, according to fresh inflation figures."

"Shop price inflation is already on the rise, according to figures from the British Retail Consortium (BRC). Furniture and health and beauty products are among the items that have risen most in recent weeks, driving an increase in shop prices of 1.2% year on year in May. The rate was slightly above the three-month average of 1.1%."

"High oil prices and the ripple effect of the prolonged closure of the strait of Hormuz shipping channel were among the factors cited by the BRC. Customers can still find bargains on TV and audiovisual equipment, it said, as retailers target football fans getting World Cup ready for this summer's tournament in the US, which starts next month."

"While some promotions were likely to be extended over the summer as retailers compete hard for consumers' disposable income, the trade body voiced doubts about the broader outlook for cost-conscious consumers. Retailers work hard to keep prices down for customers, they continue to face significant cost pressures, including higher energy bills and disruption linked to the conflict in Iran, said Helen Dickinson, the BRC's chief executive."

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