Headline inflation in the UK remained unchanged at 3.8% in the latest Consumer Price Index figures, while food inflation fell to 4.5%, according to the British Retail Consortium (BRC).
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Responding to the data, Dr Kris Hamer, Director of Insight at the BRC, said:
"Headline inflation remained unchanged last month, as an easing of food price rises was countered by an increase in transport inflation, notably air fares. Food inflation is expected to remain high into 2026 as inflationary pressures from the last Budget continue to filter through, something now being seen in the price of clothing and footwear. With the cost of the weekly shop still significantly higher than last year and the prospect of another tax-raising Budget next month, today's figures are unlikely to raise consumer spirits. Nonetheless, consumers will have been happy to see the price of key staples such as rice, bread and cereal fall on the month."
The BRC also highlighted that UK retailers face mounting pressures from rising taxes. "With the IMF warning that UK inflation will be the highest in the G7, the Chancellor must use the upcoming Budget to tackle rising prices head on. Retailers, already operating on tight margins, have been hit with £7 billion in additional taxes this year alone, costs they simply can't absorb. The Government must use what levers it has to hold back the rising tide of inflation. Reform of business rates, delivering a meaningful cut for retailers with no shop paying more, would drive and help deliver better value for customers," added Dr Hamer.
The BRC's analysis underscores that while inflation has stabilised in headline terms, consumer costs remain high, particularly for essential items, and retailers continue to operate under significant financial strain. The organisation called for targeted government action to mitigate inflationary pressures and support both the retail sector and consumer confidence.
More information:
British Retail Consortium
[email protected]
www.brc.org.uk
