
In-store inflation rises to an annual 1.5% in August, according to a survey for the British Retail Consortium
The pace of price rises in UK shops rose to its highest level in two years in August, a trade body index shows, with higher energy costs pushing up the price of food and AI chip demand making technology more expensive.
In-store inflation stepped up to 1.5% year on year in August, up from 0.9% in July, led by prices for tinned and packaged food which increased by 2.5% against 1.1% in the prior month, according to data from the research company NIQ for the British Retail Consortium.
Inflation for fresh produce remained high at 3%, amid pressure on growers from the hot dry summer plus hefty fuel and energy costs. However, that marked a slight easing off from the 3.1% recorded in July,
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The evidence of higher shop prices comes after the boss of Asda said he was seeing inflation on some fresh food begin to rise after a hot dry summer that affected crop yields.
Cereals including wheat and barley were hit particularly badly, according to the Agriculture and Horticulture Development Board. Its first harvest report of 2026 said the hot weather had resulted in the earliest harvest since records began in 2006.
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