UK shop price inflation jumps to two and a half year high

UK shop price inflation rose to 2.1 percent from a year earlier in October, its highest level in two and a half years and up from 1.4 percent in September, as retailers began passing on higher energy and food ingredient costs, the British Retail Consortium said.

Why it matters: The jump lands the day before Chancellor John Healey's first Budget on Wednesday and a week before a Bank of England meeting at which a rate rise is expected, and it suggests the retail sector's two year absorption of higher costs is ending.

Data as of Guardian report of October 26, 2026, read in full in this run, reporting the British Retail Consortium shop price monitor for October 2026. The consortium's own release was not in the pool as of writing, so the figures are carried as reported by the Guardian. Single sourced, grade C. Developing item.

UK shop price inflation rose to 2.1 percent from a year earlier in October, the highest level in two and a half years, up from 1.4 percent in September, the British Retail Consortium said. Food inflation rose to 2.9 percent from 2.5 percent, and non-food inflation more than doubled to 1.7 percent from 0.8 percent, as retailers began passing on energy and food ingredient costs that have risen since the Middle East conflict broke out, after largely absorbing them for two years. BRC chief executive Helen Dickinson said the wave of absorbed costs was starting to break through to shelf prices despite heavy discounting.

The release lands the day before the Autumn Budget and a week before the Bank of England decides rates, with officials expected to raise the policy rate from 3.75 percent to 4 percent next week. The Guardian reported that a persistent rise in retail prices could push more of the Bank’s nine-member committee toward a further rise in December or the new year.

UK shop price inflation jumps to two and a half year high

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