UK Shop Prices Drop to Lowest Level Since 2021 Amid Rising Food Costs

Retailers offer significant discounts to attract consumers, but food inflation rises due to poor harvests and climate impacts.

Overall shop price deflation reached 0.6% in September, the lowest level in over three years, according to the British Retail Consortium.
Non-food items, particularly furniture and clothing, saw the biggest price drops as retailers faced low demand and unseasonal weather.
Fresh food inflation increased to 1.5% from 1% in August, driven by poor UK harvests and delayed imports due to storms.
Olive oil prices surged by 42% year-on-year, contributing to the rise in fresh food inflation amid climate-related production issues in key regions.
Despite easing shop prices, ongoing geopolitical tensions, climate change, and regulatory costs could reverse this trend, warns the British Retail Consortium.