The shop prices in the UK slightly decreased in May, but inflation is once again on the rise.

The British Retail Consortium (BRC) released a survey on Tuesday showing that overall shop prices in the UK fell slightly in May, but food prices accelerated. The association warned that price pressures are rising again. The BRC said that due to non-food prices falling faster, overall shop prices declined by 0.1% year-on-year, the same as in April. However, food prices in May increased by 2.8% year-on-year, compared to 2.6% in April. Helen Dickinson, Chief Executive of the British Retail Consortium, said that retailers are currently dealing with the costs of rising wage taxes and increases in the national minimum wage. "The reemergence of inflation is not surprising," Dickinson said, adding that new packaging taxes and new labor market regulations could further push up costs. Official data last week showed that the UK's consumer price index (CPI) in April exceeded expectations, prompting investors to bet that the Bank of England would slow down its pace of interest rate cuts. The Bank of England predicts that by September, the inflation rate will reach 3.7%.