31.08.202623:09:13UTC+00UK Shop Price Inflation Highest Since 2024

UK shop price inflation accelerated to 1.5% year-on-year in August 2026, up from 0.9% in July, reaching its highest level since February 2024. The increase reflects rising energy, input, and commodity costs feeding through more strongly into retail prices.

Food inflation rose to a four-month high of 2.8%, compared with 2.2% in July, with particular pressure on ambient foods, which are typically imported and processed. Non-food inflation also picked up sharply, climbing to 0.9% from 0.2%, its highest rate since February 2024. This was driven in part by robust demand associated with the artificial intelligence boom, which has pushed up prices for memory chips and storage components used in consumer electronics.

BRC Chief Executive Helen Dickinson noted that higher costs are now beginning to filter through into prices. More broadly, UK consumer price inflation accelerated to a four-month high of 2.9% in July. The Bank of England expects CPI inflation to peak at 3.2% in October and November, with food inflation forecast to reach 3.5% in December.