UK shop price inflation rose to 1.2% in May from 1.0% in April as retailers continued to face mounting cost pressures across supply chains, according to new industry data.
Furniture, health and beauty products were among the main drivers of the increase, with higher raw material and shipping costs pushing non-food prices higher.
The British Retail Consortium (BRC) said the rise also reflected wider disruption linked to higher energy prices and global tensions affecting transport and production costs.
Despite the overall increase in shop prices, food inflation slowed to 2.7% in May, down from 3.1% in April. It marks the lowest level in a year and remains below the longer-term average of around 3.1%.
The BRC said strong competition between supermarkets helped keep food prices under control, with promotions and discounting continuing to support consumers.
However, industry leaders warned that cost pressures remain significant, particularly because of rising energy bills and wider geopolitical instability.
Helen Dickinson, chief executive of the BRC, said retailers were still working to absorb costs where possible, but warned this may not continue indefinitely.
She added that higher energy costs, taxes and regulatory pressures were making it increasingly difficult for businesses to prevent further price rises.
A separate industry report from the British Chambers of Commerce found that most firms are being affected in some way by ongoing global disruption, with energy costs, shipping delays and raw material prices cited as key concerns.
Manufacturing has been particularly exposed, with many companies expecting further increases in energy bills over the coming year.
Business groups have urged government support, including measures to reduce energy-related costs and ease regulatory pressures, arguing this would help stabilise prices for consumers.
The government said it is already taking steps to support businesses, including schemes aimed at reducing electricity costs for manufacturers and energy-intensive industries.
Despite some easing in food inflation, analysts warned that continued pressure from global energy markets and supply chain disruption could keep inflation elevated in the months ahead.
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