UK Shop Price Inflation Hits 1.5% as US-Iran War Lifts Energy and Import Costs
Updated
Updated · The Grocer · Sep 1
UK Shop Price Inflation Hits 1.5% as US-Iran War Lifts Energy and Import Costs
3 articles · Updated · The Grocer · Sep 1
Summary
August shop price inflation climbed to 1.5% from 0.9% in July, the highest in more than two years, as war-linked energy and import costs began feeding through to retail tills.
Food inflation rose to 2.8% from 2.2%, led by ambient food at 2.5% versus 1.1% in July, while fresh food eased 0.1 point to 3% as summer promotions and retailer price cuts held down some prices.
Non-food prices also came under pressure: electrical goods rose as the AI boom pushed up memory-chip and storage costs, though retailers kept clothing prices low ahead of the new school year.
The BRC warned households face a tougher autumn as energy bills rise, and said retailers may struggle to absorb higher operating costs without hitting investment, jobs and prices.