Food prices in the UK rose by 2.9% in the year to October, up from 2.5% in September, according to figures from the British Retail Consortium (BRC) published on 27 October. The increase was driven by ambient groceries, such as tinned and packaged foods, where inflation jumped to 3.2% from 2.2% the month before.

Fresh food inflation was unchanged at 2.6%, while overall shop prices rose 2.1% year on year, the fastest pace since February 2024 and up from 1.4% in September. Non-food inflation climbed to 1.7% from 0.8%, its highest since December 2023, with sharp rises reported for furniture, flooring and home improvement goods.

Retailers urge Budget action on costs

The BRC said prices were being pushed up by higher transport and energy costs, alongside increased employment costs and packaging levies. Its chief executive, Helen Dickinson, said retailers had absorbed a large wave of costs over the past two years and that pressure was now feeding through to prices.

The figures were published the day before Chancellor John Healey delivers his first Budget on 28 October. The BRC urged the Chancellor to cut employment costs for retailers, cancel a planned 3.5% business rates increase and remove shops from a high-value surtax, warning that households would otherwise end up paying more.

The BRC figures are based on prices collected between 1 and 7 October. Official consumer price inflation, which covers a wider range of goods and services, stood at 3.5% in September, up from 3.1% in August.

Sources: Grocery Gazette and IndexBox, both reporting the BRC figures and the Reuters account of the release.