{
  "id": 16681869,
  "title": "UK shop price inflation ‘highest since 2024’ as retailers struggle to limit price rises",
  "url": "https://urgent.news/2026/10/27/uk-shop-price-inflation-highest-since-2024-as-retailers-struggle-to",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-27T00:01:02.000Z",
  "source": {
    "name": "Guardian Business",
    "slug": "guardian-business",
    "url": "https://www.theguardian.com/business/2026/oct/27/uk-shop-price-inflation-highest-since-2024-as-retailers-struggle-to-limit-price-rises"
  },
  "original_language": "en",
  "account": "The British Retail Consortium reported that shop price inflation in the UK has reached its highest level in two and a half years, as retailers struggle to control rising costs passed on to consumers. The inflation rate increased to 2.1% year on year in October, up from 1.4% in September. Food inflation, which had been relatively low throughout the past year, rose to 2.9% year on year in October, with September's increase being 2.5%. Non-food inflation, including items like clothing and footwear, more than doubled, from 0.8% to 1.7% year on year.\n\nThe increase in retail prices is attributed to the rising costs of energy and food ingredients, particularly since the Middle East conflict escalated. Brent crude oil prices reached $117 a barrel, significantly above the $70 average seen before the US and Israel attacked Iran in February. Gas prices have also soared, contributing to the UK consumer prices index reaching 3.5% last month.\n\nConsumer confidence has dropped sharply since the summer, as the impact of the Middle East conflict became more clear. The Bank of England is expected to raise interest rates from 3.75% to 4% next week, which could further pressure retailers to increase prices. Retailers have been absorbing these higher costs for the past two years, but the dam is starting to break, according to Helen Dickinson, the chief executive of the British Retail Consortium.\n\nThe impact of rising living costs is particularly felt by low-income families, as highlighted by a report by Ruth Patrick, a professor in social and public policy at the University of Glasgow. The report found that high petrol and diesel prices are making it difficult for families to transport disabled children to school and health appointments, as well as for workers commuting to and from their jobs. With petrol prices above £1.75 a litre and diesel often exceeding £2 a litre, many low-income families have resorted to shopping in reduced-item aisles, changing their food purchases, and even turning off the heating when cold.\n\nPatrick argues that the current government budget is an opportunity to address the cost of living crisis and live up to the promise made by Andy Burnham of a \"cost of living government.\" She emphasizes the need for sustainable, long-term solutions to ensure social security adequacy, such as restoring the real value of child benefit, which has traditionally helped families cope with additional expenses.",
  "summary": "British Retail Consortium says ‘dam is starting to break on the huge wave of costs’ being kept from consumers Shop price inflation has risen to the highest level in two and a half years, according to the British Retail Consortium, which warned that “the dam is starting to break” when it comes to retailers trying to limit price rises for customers. The lobby group said shop price inflation was…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}