UK shop price inflation eases to 1.4% but retailers warn April rate rises could push costs onto shoppers

From the Newshound archive · first published 29 September 2026.

Shop prices rose 1.4% in the year to September, down from 1.5% in August, as retailers held back price rises through heavy promotions and discounting, British Retail Consortium and NIQ figures show. Food inflation fell to 2.5% from 2.8%, with meat and dairy prices pulled down by competition, though poor European harvests drove fruit prices higher and chocolate remained expensive on global commodity costs. Helen Dickinson, BRC chief executive, warned that retailers have absorbed "wave after wave of extra costs" but are approaching their limits ahead of April's business rates rise.

Non-food inflation dipped to 0.8%, helped by deep discounts on back-to-school books, stationery, footwear and electricals.

Dickinson urged the Chancellor to freeze the business rates rise and scrap the retail surtax, warning failure to act risks pushing more costs onto consumers.

NIQ's Mike Watkins cautioned that Q4 household budgets will tighten further, meaning retailers will be under pressure to keep absorbing cost increases rather than passing them on.