2026-07-29
Prices at British retailers rose at their slowest pace since December, helped by supermarket discounts on alcohol and snacks during the men’s soccer World Cup, according to data released Tuesday by the British Retail Consortium.
The retail group said average shop prices in July were 0.9% higher than a year earlier, down from 1.2% annual inflation in June. On a monthly basis, prices fell 0.1%. The figures were based on prices collected between July 1 and July 9.
Helen Dickinson, the chief executive of the British Retail Consortium, said retailers had competed aggressively to keep price increases in check through summer promotions across food and other goods. She said some clothing and footwear chains also cut prices on seasonal items.
Food price inflation slowed to 2.2% in July from 2.4% in June, the lowest reading since February 2025, the consortium said. Non-food inflation eased to 0.2% from 0.6%, although prices for electrical goods and health and beauty products continued to face pressure from higher semiconductor and manufacturing costs.
The data points to a retail market where promotions are playing a larger role in shaping what shoppers pay, even as broader cost pressures remain in the background. For drinks makers and sellers, that matters because discount campaigns tied to major sporting events can shift short-term demand, alter product mix and put pressure on pricing and margins in categories such as beer, wine and spirits.
The July figures add to signs that inflation at the store level has cooled from earlier peaks. Britain’s Office for National Statistics said this month that the country’s broader consumer price index fell to 2.6% in June, a 15-month low.
Even so, the outlook remains uncertain. The Bank of England said last month that consumer inflation was likely to rise to just over 3.25% later this year, driven largely by higher energy costs linked to the U.S.-Iran war.
That leaves retailers balancing two competing forces: consumers who remain sensitive to prices and cost pressures that have not fully disappeared. In food and drink, where promotions can quickly influence shopping baskets, temporary discounts may help sustain volumes but can also make it harder for companies to protect margins if input costs rise again later in the year.
The latest numbers suggest supermarkets used the World Cup period to push offers on products closely tied to at-home viewing and social gatherings. Alcohol and snack promotions helped soften overall shop price growth in July, showing how event-driven discounting can affect inflation readings beyond a single category.
For households, the slowdown offers some relief after a long stretch of elevated living costs. For retailers and suppliers, it is a reminder that competition for shoppers remains intense, with pricing strategies likely to stay central through the rest of the summer as businesses watch energy costs, consumer confidence and demand trends closely.