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UK Broadband

UK shop price inflation slows to 1.4% as retailers extend promotions

Annual UK shop price inflation eased to 1.4% in September as food promotions and back-to-school discounting took the edge off prices, the BRC-NIQ monitor found — but retailers warn of rising costs ahead.

By James Calloway · · 1 min read

Annual UK shop price inflation fell to 1.4% in September from 1.5% in August, remaining slightly above the three-month average of 1.3%, according to the BRC-NIQ shop price monitor published on Tuesday 29 September 2026.

Food inflation slowed to 2.5% from 2.8% as promotions brought down meat and dairy prices, though poor European harvests pushed up fruit prices and high commodity prices kept chocolate and confectionery elevated.

Non-food inflation eased to 0.8% from 0.9%, driven by strong discounting of back-to-school essentials including books, stationery, footwear and electricals.

BRC chief executive Helen Dickinson said: “Retailers have absorbed wave after wave of extra costs, but there is a limit to what businesses can shoulder.” With higher business rates taking effect in April alongside rising employment costs, energy bills and packaging taxes, she warned that “the budget is a fork in the road”.

Finance minister John Healey could keep prices down in his 28 October tax and spending plan by helping retailers with business rates bills; the BRC has asked him to freeze the rates rise and remove shops from the business rates surtax.

The survey is based on prices collected between 1 and 7 September. Britain’s broader official CPI rose to 3.1% in August and is expected to surpass 4% in early 2027 due to the Iran-war energy price shock.

Sources:

More on this topic: all UK Broadband stories

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