Shop Price Inflation Eases in September Despite Mounting Cost Pressures

UK shop price inflation eased slightly in September, dropping to 1.4% from August's two-year high of 1.5%, according to the BRC-NIQ Shop Price Index.

The annual figure remained above the three-month average of 1.3%. Food inflation cooled by 0.3 percentage points, falling to 2.5% as retailers increased promotional activity on meat and dairy products, while fruit prices rose due to poor European harvests.

Non-food inflation also decreased to 0.8%, with discounts on back-to-school items keeping prices in check. However, British Retail Consortium CEO Helen Dickinson warned that retailers continue to absorb substantial cost increases, citing higher employment costs, energy bills, packaging taxes, and upcoming changes to business rates as major concerns.