UK shop price inflation hits two-year high as retailers pass on costs
British retailers report steepest price rises since 2024 as they struggle to absorb rising energy and ingredient expenses.
At a glance
- Shop price inflation rose to 2.1% year on year in October, up from 1.4% in September
- British Retail Consortium attributes the rise to increased costs of energy and food ingredients
- Retailers have been absorbing costs but are now beginning to pass them on to consumers
- This is the highest inflation level in two and a half years
Shop price inflation in the UK reached 2.1% year on year in October, up sharply from 1.4% in September, according to the British Retail Consortium. The lobby group warned that retailers are beginning to pass on to consumers the rising costs of energy and food ingredients.
The consortium said "the dam is starting to break" on the wave of costs that retailers had previously absorbed. The acceleration marks the highest inflation level in two and a half years.
Why it matters
Rising shop price inflation signals that consumer prices may accelerate further as retailers exhaust their ability to absorb cost increases, potentially affecting household spending power.
Original reporting
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