UK shop prices rose 0.9% in August from a year earlier, the British Retail Consortium and NielsenIQ said, the sharpest increase since March 2024 and an acceleration from July’s 0.7% gain. The figure narrowly undershot economists’ 1% median forecast. Food costs climbed 4.2% on the year—the biggest jump since February 2024—as poor harvests, higher labour expenses and tight supplies pushed up the prices of staples such as butter, eggs and chocolate. The data add to concerns at the Bank of England that inflation could prove stickier than hoped. Headline consumer-price growth hit an 18-month high of 3.8% in July and the central bank expects it to reach 4% in September before easing. Policymakers have warned that elevated food inflation can lift household inflation expectations and wage demands, complicating the path to the 2% target. Separately, jobs website Adzuna reported a 1.2% fall in advertised vacancies in July and a 0.3% drop in posted salaries, hinting at cooling labour demand even as pay growth remains strong. The combination of persistent price pressures and a softening jobs market is likely to intensify debate over the timing of any BoE rate cuts.
📈 UK shop prices rise 0.9%, driven by soaring food costs. The Bank of England faces inflation challenges as labor market shows signs of slowdown. #Inflation #Economy #RetailInsights https://t.co/4bVWnreWfx
UK grocery prices edged up in August, as bad weather and poor harvests exacerbated the strain of higher operating costs hitting supermarkets https://t.co/bkrivpp5Gl
UK shop prices rise by most since March 2024, adding to inflation nerves https://t.co/73RvJ08WvC https://t.co/73RvJ08WvC