UK shop price inflation rose by 0.9% year-on-year in July 2026, falling short of market expectations for a 1.2% gain and marking the slowest increase since December 2025. The latest reading also slowed from a 1.2% rise in the previous month, as widespread summer promotions and supermarket discounts curbed price growth. Food inflation slowed for a sixth straight month to 2.2%, the lowest since February 2025, from 2.4% in the previous month, while non-food inflation eased to 0.2% from 0.6%, despite higher prices for electrical, health, and beauty products due to rising semiconductor and manufacturing costs. On a monthly basis, shop prices fell 0.1%. The British Retail Consortium said retailers intensified discounts on alcohol, snacks, clothing, and footwear during the men's soccer World Cup and summer sales. BRC Chief Executive Helen Dickinson noted that fierce competition continues to limit price increases, though retailers remain under pressure from rising operating costs.