UK food price inflation hits 18-month high in August

Food prices in the United Kingdom rose at their fastest pace in 18 months in August, driven by a surge in staples such as chocolate, butter and eggs. The British Retail Consortium’s latest NIQ Shop Price Monitor shows food inflation at 4.2%, up from 4% in July, and the highest reading since February 2024. Fresh-food inflation accelerated to 4.1% as dairy costs climbed, while ambient food inflation eased slightly to 4.2% year on year. Overall shop price inflation rose to 0.9% for August, even as non-food products continued to deflate. The rise comes amid ongoing pressure on households from the cost of living and follows earlier BoE commentary that the national insurance contributions increase in April helped push prices higher.

Retail executives warn the acceleration compounds challenges for households already tightening budgets. Helen Dickinson, chief executive of the BRC, said the uptick marks the highest rate of shop price inflation since March last year and is fuelled by broader food-price increases. She stressed that retailers are doing what they can to limit rises, but the combined effect of higher wage costs, supply bottlenecks and global price pressures makes the task...