UK Shop Price Inflation Hits Lowest Since October

Shop price inflation in the UK has decreased to its lowest level since October 2021, with a 0.2% rise in June, attributed to retailers' investments in operations and supply chains paying off. Food inflation dropped to 2.5% in June, marking the fourteenth consecutive decline, while non-food items experienced a 1% decrease. The British Retail Consortium highlighted heavy discounting and falling food prices as contributing factors to the easing inflation. Despite Prime Minister Rishi Sunak's claim of credit for the inflation decline, the upcoming national election outcome remains uncertain, with the possibility of a Conservative Party loss to the Labour Party. The Bank of England is evaluating interest rate cuts given the cooling inflation, though challenges persist in the services sector.