In July, shop prices in the UK saw the biggest increase since April 2024, with food prices rising sharply.

A survey showed that, in the 12 months leading up to July, UK store prices experienced the largest increase in over a year, with food prices rising even more strongly. This survey serves as another signal of inflation, highlighting the dilemma faced by the Bank of England. The British Retail Consortium (BRC) stated on Tuesday that overall store prices in July increased by 0.7% compared to a year ago, marking the largest increase since April 2024, when it rose by 0.4% in June. Food prices jumped by 4.0%, the largest increase since February 2024, and higher than the 3.7% increase in June. BRC Chief Executive Helen Dickinson stated, "Due to continuous food price inflation for the sixth month in a row, families will see an increase in their food bills." BRC mentioned that meat and staple food prices, such as tea, have risen significantly due to tight global market supply, but discounts on clothing and furniture have provided some relief for consumers. UK's overall inflation rate rose from 3.4% in May to 3.6% in June, possibly surpassing the Bank of England's forecast to peak around 3.7% in September. The central bank predicts that the inflation rate will only return to its 2% target by 2027. It is expected that the Bank of England will lower borrowing costs on August 7, the fifth reduction since August last year, but the bank will continue to adhere to its "gradual, cautious" approach for further interest rate cuts.