UK shop prices rise at fastest pace in two-and-a-half years ahead of budget, BRC says
UK shop prices rose 2.1% in October compared with a year earlier, the fastest increase since February 2024, the British Retail Consortium said, as retailers warned they can no longer absorb rising costs.
Britain’s main retail trade body warned on Tuesday that shops are now increasingly unable to absorb rising costs, after its data showed prices increased at the fastest pace in two-and-a-half years this month, Reuters reported (https://www.reuters.com/world/uk/uk-retail-body-warns-dam-is-starting-break-price-rises-2026-10-27/).
The British Retail Consortium (BRC) said shop prices in October were 2.1% higher than a year ago, the biggest increase since February 2024 and up from 1.4% in September. The Times added that prices rose 0.4% month on month, above the three-month average of 1.6% (https://www.thetimes.com/business/companies-markets/article/shop-price-inflation-rises-budget-0gtn9xb2t).
“The dam is starting to break on the huge wave of costs retailers have absorbed over the last two years,” BRC Chief Executive Helen Dickinson said, calling on finance minister John Healey to lower retailers’ property taxes and employment costs in his first annual budget on Wednesday.
Food inflation was 2.9% in October, its highest since April and up from 2.5% in September, Reuters reported. Ambient food inflation rose to 3.2%, its highest since September 2025, up from 2.2% in September, while fresh food inflation was unchanged at 2.6%. Non-food inflation rose to 1.7% from 0.8%, its highest since December 2023, with sharp rises for furniture, flooring and home improvement goods.
The BRC blamed higher transport and energy costs, plus employment costs and packaging levies. The data, collected October 1–7, lands against official consumer price inflation of 3.5% in September, up from 3.1% in August, Reuters reported.
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