The BRC-NIQ Shop Price Index is a monthly measure of inflation across the UK. The data assesses the change in price of 500 commonly bought products to provide analysis around retail-specific and economy-wide inflation. The index separates grocery prices from other categories to paint a true picture and how food price inflation compares to that of non-food items.
UK food inflation slowed in September as retailers extended promotions on meat and dairy to win back shoppers after a hot summer, partly reversing August’s price jump.
Advertisement
Shop price inflation increased to a two-year high in August as summer promotions came to an end, while higher energy and commodity costs fed into prices.
Shop price inflation fell in July as retailers competed to keep prices low during sweltering temperatures and with the World Cup on.
Shop price inflation was unchanged in the month of June, as summer discounting by retailers kept costs for customers down.
Shop prices rose during May, prompting fears of more increases to come as retailers’ costs climb.
Inflation continues to rise as high business energy costs and the national insurance increase “continues to feed through prices,” the British Retail Consortium said.
The impact of policy costs and regulation on retailers is expected to result in “sticky” inflation this year, trade body the British Retail Consortium has cautioned.
Retailers went earlier on promotional activity than in previous years in a bid to lure shoppers into spending.
Shop price inflation decreased year on year in the first week of October, providing relief for retailers heading into Halloween and the rest of the golden quarter.
The rising price of both fresh and ambient food is driving overall inflation, as the £7bn of added costs from last year’s Budget continue to feed through to customers.
Food prices jumped for the fourth month in a row, as retailers are now faced with absorbing an additional £5bn in costs from last year’s controversial Budget.
Recent figures suggest that food price inflation is slowly creeping back up, according to the BRC-Nielsen shop price index.
Despite ongoing global economic headwinds and strong comparisons year on year, warmer weather and Mother’s Day both helped retail sales over the month of March.
Shop prices remained deflated in March, with most non-food categories driving this fall despite retailers facing increased costs from the budget.
Shop prices have remained in a state of deflation in February, but there are warnings that inflation can rise due to recent price hikes, geopolitical tensions, and the £7bn in added retail costs.
Shop price deflation in the first month of the year was driven by retailers offering customers deep discounts during the period.
Shop prices will increase during the course of 2025 after the key festive trading period failed to meet expectations, according to the British Retail Consortium.
The British Retail Consortium has urged the chancellor to help keep prices low at the Budget, as shop price growth was at its lowest rate since August 2021.
Shop prices continue to fall into deflation to reach their lowest level in three years, with furniture and clothing seeing the biggest drops in prices.
Shop prices fell into deflation for the first time in nearly three years driven by non-food retailers discounting heavily to shift their summer stock.
Shop price inflation remained unchanged in July, benefiting from high comparatives last year, but the outlook remains uncertain for the remainder of the year, according to the British Retail Consortium (BRC).
