UK Shop Price Inflation Rises to 1.2% in March

Shop price inflation in the United Kingdom rose slightly to 1.2 percent year on year in March, up from 1.1 percent the previous month, as higher costs linked to the conflict in the Middle East began filtering through supply chains, according to data from the British Retail Consortium and NIQ.

The increase marked the first uptick in overall shop price inflation since February, though it remained below the three-month average of 1.3 percent. Food inflation eased marginally to 3.4 percent from 3.5 percent, driven by falling dairy prices amid lower wholesale milk costs. Fresh food prices saw a small rise to 4.4 percent from 4.3 percent, while nonperishable food inflation dropped to 2 percent from 2.3 percent. In contrast, nonfood inflation shifted into positive territory at 0.1 percent, reversing a 0.1 percent decline in February. Retailers attributed the overall rise to emerging pressures on energy, shipping and fuel costs stemming from disruptions in the region, including blockages affecting routes like the Strait of Hormuz.

Despite these headwinds, promotions played a role in tempering the increase. Discounts on alcohol, televisions and sound systems ahead of the Six Nations...