Overview

• Food prices rose 4.2% year on year in August, the highest since February 2024, according to the BRC-NIQ Shop Price Monitor.
• Overall shop-price inflation reached 0.9% despite a 0.8% decline in non-food prices.
• Fresh food inflation accelerated to 4.1% from 3.2% in July, while ambient food inflation eased to 4.2% from 5.1%.
• The BRC cited higher demand, tighter supply and labour costs for staples such as butter and eggs, with poor cocoa harvests pushing up chocolate.
• NIQ pointed to global supply costs, weather effects, the end of promotions and rising operational costs, as the BoE flagged April’s national insurance rise as a contributor and retailers warned new taxes could lift food and drink inflation toward 6% later this year; prices were collected Aug 1–7.