Overview

• The BRC-NIQ Shop Price Monitor for Aug 1–7 shows food prices up 4.2% year on year, overall shop prices up 0.9%, and non-food prices down 0.8%.
• Chocolate, butter and eggs led the increases, with cocoa shortfalls, tighter supply and higher labour costs cited by retailers.
• Fresh food inflation accelerated to 4.1% from 3.2% in July, while ambient food inflation eased to 4.2% from 5.1%.
• The Bank of England, which cut the base rate to 4% earlier this month, has flagged food-driven price pressures as a risk to inflation expectations and further rate cuts.
• More than 60 retail chiefs, including leaders at Tesco, Sainsbury’s and Boots, urged Chancellor Rachel Reeves to avoid new taxes and warned food inflation could approach 6% later this year.