The latest figures from the British Retail Consortium (BRC) show shop price inflation increased to 2.1 per cent year-on-year in October, against growth of 1.4 per cent in September and going above the 3-month average of 1.6 per cent.

In the week between 01 – 07 October 2026, non-food inflation increased to 1.7 per cent YoY in October, against growth of 0.8 per cent in September, again this surpassed the 3-month average of 1.1 per cent.

Helen Dickinson, chief executive of the BRC, said: “The dam is starting to break on the huge wave of costs retailers have absorbed over the last two years. Non-food inflation climbed to an almost three-year peak as high energy and transport costs pushed up prices with furniture, flooring and DIY particularly affected this month.

“The message to the Chancellor ahead of tomorrow’s Budget could not be clearer: act now or prices will keep on rising. Retailers cannot endlessly swallow higher business rates, employment costs, energy bills, and packaging taxes.

“Without a change of course, October’s jump in inflation is only the beginning. Our recipe for the Chancellor is simple. Slash employment costs. Cancel the 3.5 per cent business rates increase. Remove shops from the high-value surtax. Otherwise, households will end up paying the price.”

Food inflation was also above the 3-month average of 2.7 per cent. Fresh food inflation was unchanged at 2.6 per cent YoY in October. This was slightly below the 3-month average of 2.7 per cent.

While, ambient food inflation jumped to 3.2 per cent YoY in October, against growth of 2.2 per cent in September. This is above the 3-month average of 2.6 per cent.

Mike Watkins, head of retailer and business insight, NIQ, added: “With global supply chain pressures building over the last six months, higher inflation across retail was to be expected.

“However, price cuts by food retailers since the end of summer has delayed some of the impact and high street retailers, faced with consumers becoming more cautious in the face of higher energy and fuel costs, will now be more reliant on promotions to drive discretionary non-food spend.”

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