Key facts
- UK shop price inflation slowed to 1.4% in September from 1.5% in August.
- Food price inflation slowed to 2.5% in September.
- Non-food inflation slowed to 0.8% in September.
- The BRC survey was based on prices collected between September 1 and September 7.
British shop price inflation eased slightly in September, falling to 1.4% from 1.5% in August, according to a survey by the British Retail Consortium (BRC). Despite rising costs pressures on retailers, attributed partly to the Iran war, businesses have absorbed additional expenses, but the BRC warned there is a limit to what they can shoulder.
BRC Chief Executive Helen Dickinson urged the government to provide relief in the upcoming October 28 tax and spending plan, particularly on business rates, to help keep prices down. She noted that higher business rates, rising employment costs, energy bills, and packaging taxes are set to increase costs for retailers.
The BRC survey, conducted between September 1 and September 7, indicated that food price inflation slowed to 2.5% from 2.8%, aided by promotions on meat and dairy. However, fruit prices were pushed up by poor European harvests, and elevated commodity prices kept chocolate and confectionery prices high. Non-food inflation also decreased to 0.8% from 0.9%, with strong discounting on back-to-school items contributing to the slowdown.
Britain's broader official consumer price inflation index stood at 3.1% in August and is anticipated to exceed 4% in early 2027, largely due to energy price shocks linked to the Iran war.