UK shop price inflation ‘highest since 2024’ as retailers struggle to limit price rises
Summary
UK shop price inflation rose to 2.1% in October, up from 1.4% in September and its highest level in two and a half years, the British Retail Consortium said. Retailers have absorbed rising costs but are beginning to pass them on, while higher food, fuel and heating costs are adding pressure on households ahead of Chancellor John Healey’s first budget.Key Facts
- The British Retail Consortium said food inflation rose to 2.9% in October from 2.5% in September.
- Non-food inflation increased to 1.7% in October from 0.8% in September.
- The article says higher energy and ingredient costs followed the outbreak of conflict in the Middle East.
- Brent crude oil recently reached $117 a barrel, compared with an average of about $70 in the months before the US and Israel attacked Iran in February.
- The Bank of England is expected to raise its interest rate from 3.75% to 4% next week, with further increases possible if retail price rises persist.
- A study of 100 low-income families found that 73% of participants had shopped in reduced-items aisles, 62% had changed the food they buy, and 63% had left the heating off despite cold conditions.
- The study’s report says high petrol and diesel costs particularly affect families who need cars to transport disabled children or commute to work.
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