Shop price inflation reaches two year high
Period Covered: 01 – 07 August 2026
- Shop price inflation increased to 1.5% year on year in August, against growth of 0.9% in July. This is above the 3-month average of 1.2%.
- Non-Food inflation increased to 0.9% year on year in August, against growth of 0.2% in July. This is above the 3-month average of 0.6%.
- Food inflation increased to 2.8% year on year in August, against growth of 2.2% in July. This is above the 3-month average of 2.5%.
- Fresh Food inflation decreased to 3.0% year on year in August, against growth of 3.1% in July. This is in line with the 3-month average of 3.0%.
- Ambient Food inflation increased to 2.5% year on year in August, against growth of 1.1% in July. This is above the 3-month average of 1.8%.
Note: Month-on-month % change refers to changes in the level of prices.
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.”
“The months ahead look challenging for households, with rising bills putting further pressure on budgets. Retailers are facing persistently high operating costs, limiting their ability to absorb further increases without impacting investment, jobs and prices. If the government is serious about supporting growth while keeping the cost of living in check, it must address the cost of doing business, including by tackling the growing burden of business rates, packaging and employment taxes.”
Mike Watkins, head of retailer and business insight, 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.”