UK shop price inflation ticks higher amid Middle East conflict concerns |
| UK shop price inflation rose to 1.2% year-on-year in March, up from 1.1% in February, as early cost pressures linked to the Iran conflict began filtering through retail supply chains, according to the British Retail Consortium. Although the rate remains below the recent three-month average, retailers have warned that escalating geopolitical tensions, particularly impacts on energy, transport and sourcing costs, are likely to push inflation higher in the coming months. Food inflation eased slightly to 3.4%, helped by lower dairy prices, while non-food prices returned to modest growth, rising 0.1% after a prior decline. However, the industry highlighted additional cost pressures from new labour market and health-related regulations, which could further strain margins and feed into consumer prices. |
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