UK shop prices rise at fastest pace in nearly two years
Food prices rose 3.9 per cent higher in January, compared to a year ago
[LONDON] Prices at major British retailers rose at the fastest pace since February 2024 this month, led by a pick-up in prices for food as well as furniture and health and beauty products, industry figures showed on Tuesday.
The British Retail Consortium’s shop price index showed a 1.5 per cent annual rise in January, up from a 0.7 per cent gain in December.
Food prices were 3.9 per cent higher than a year earlier, up from a 3.3 per cent rise in December and the biggest increase since October.
“Any suggestion that inflation has peaked is simply not borne out by these figures,” BRC chief executive Helen Dickinson said.
“Shop price inflation jumped this month due to high business energy costs and the hike to National Insurance continuing to feed through to prices. Meat, fish and fruit were particularly affected,” she added.
Non-food prices rose by 0.3 per cent, also the biggest annual rise since February 2024.
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Official consumer price inflation data for December - which covers a wider range of goods and services - rose to 3.4 per cent from 3.2 per cent.
Bank of England Governor Andrew Bailey expects CPI to fall close to 2 per cent by April or May, largely due to different one-off price changes in regulated prices and taxes this year compared to 2025
CPI data showed food and non-alcoholic drink prices rose 4.5 per cent year-on-year, less than the 5.3 per cent forecast by the BoE in November
The BRC data is based on prices from Jan 1-7. REUTERS
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