Business · Economy · 2 hrs ago
UK shop price inflation rises to 2.1% in October
UK shop price inflation rose to 2.1% in October, its highest level in two and a half years, according to the British Retail Consortium.
Retailers have absorbed higher costs for much of the past two years, but rising energy and food costs are pushing prices up.
Food inflation reached 2.9%, while non-food inflation more than doubled to 1.7%.
Higher petrol and diesel prices are adding pressure, especially for low-income families who need cars for work or to transport disabled children.
In a study of 100 low-income families, 73% had shopped in reduced-items aisles in the past month, and many had changed what they ate or kept the heating off.
The Bank of England is expected to raise interest rates next week, and persistent price rises could prompt further increases later.
Chancellor John Healey faces pressure to address the cost of living in his first budget on Wednesday.
UK shop price inflation rose to 2.1% year on year in October, up from 1.4% in September, according to the British Retail Consortium.
Food inflation increased to 2.9% from 2.5%, while non-food inflation more than doubled to 1.7% from 0.8%.
The BRC said retailers were beginning to pass on higher energy and food-ingredient costs after absorbing them for much of the past two years.
The rise adds pressure on Chancellor John Healey ahead of his first budget on Wednesday, as households face higher living costs.
Bank of England officials are expected to raise interest rates next week from 3.75% to 4%.
- Who
- The British Retail Consortium reported the rise in shop price inflation. Its chief executive, Helen Dickinson, said retailers were struggling to absorb higher costs.
- What
- Shop price inflation rose to 2.1% year on year in October, from 1.4% in September.
- When
- October 2026. The figures were reported on 27 October.
- Where
- The UK.
- Why
- Retailers faced rising energy and food-ingredient costs, which the BRC linked to the Middle East conflict.
This story does not have two clearly opposing sides.
The US and Israel attacked Iran, after which energy and food-ingredient costs rose, according to the BRC.
UK shop price inflation was 1.4% year on year, food inflation was 2.5%, and non-food inflation was 0.8%.
Shop price inflation reached 2.1%, food inflation rose to 2.9%, and non-food inflation reached 1.7%.
Bank of England officials are expected to raise interest rates from 3.75% to 4%.
- Shop price inflation
- 2.1% year on year in October, up from 1.4% in September
- Food inflation
- 2.9% in October, up from 2.5% in September
- Non-food inflation
- 1.7% in October, up from 0.8% in September
- Brent crude oil
- $117 a barrel in recent days, compared with a $70 average before the February attacks
- UK consumer prices index
- 3.5% last month
What people are saying
The dam is starting to break on the huge wave of costs retailers have absorbed over the last two years.
It’s getting to a point where I don’t know how we are going to keep managing to run our car.