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UK shop inflation hits two-year high as energy and commodity costs rise
Food prices climbed to 2.8% year over year, while the BRC said households face a challenging few months as higher bills pressure budgets.
UK shop price inflation in the United Kingdom rose to its highest level in over two years, with the British Retail Consortium warning that energy and commodity costs are working their way into consumer prices through the autumn.
The BRC said shop price inflation increased to 1.5% in the year to August, up from 0.9% in the year to July and compared with a three-month average of 1.2%.
Food price inflation rose to 2.8% from 2.2% in the prior month, after having been on a downward trend for much of 2026.
Helen Dickinson, chief executive of the BRC, said the impact of higher energy prices and commodity costs is beginning to filter through into prices and warned that the months ahead could be challenging for households as rising bills further strain budgets.