UK shop price inflation hits two-year high in August
UK shop price inflation climbed to its highest level in two years in August, driven by higher energy, input, and commodity costs.
According to figures from the British Retail Consortium (BRC), overall shop prices increased by 1.5% year-on-year in the month after edging up 0.9% in July.
Subscribe to TRBFood prices rose by 2.8% in August, compared with growth of 2.2% the month before. Within that, ambient food inflation increased sharply to 2.5% year-on-year, up from 1.1% in July. However, fresh food inflation eased slightly to 3%, down from growth of 3.1% a month earlier.
Meanwhile, non-food prices rose 0.9% year-on-year in August, up from an uplift of 0.2% in July.
Helen Dickinson, chief executive of the BRC, said: “Shop price inflation rose to its highest level in over two years, albeit well below the headline Consumer Price Index.
“The impact of higher energy, input and commodity costs is beginning to filter through into prices, particularly for ambient foods which are typically imported and processed. In non-food, electrical prices rose amid the ongoing AI boom, which is forcing up the price of memory chips and storage.
“Meanwhile, retailers kept clothing prices low to offer value for families getting ready for the new school year.”
Mike Watkins, head of retailer and business insight at NIQ, said: “While the increase in both food and non-food inflation is not unexpected, particularly as some of the summer promotional activity seen in recent months comes to an end, retailers continue to keep prices low, helping consumers manage rising household costs such as energy and fuel.
“However, pressures are continuing to build across supply chains, and we can expect price competition to intensify as we move into the autumn months.”
