Prices in the shops rose this month by the most since March last year.
Prices rose by 0.9% compared with August 2024, driven by a jump of 4.2% in food prices, the biggest since February last year, the British Retail Consortium said this morning.
Helen Dickinson, chief executive of the BRC, said staples such as butter and eggs saw significant increases in price due to high demand, tightening supply and increased labour costs, while poor cocoa harvests had pushed up the cost of chocolate.
She added that there was was some respite for parents ahead of the new academic year, with lower prices for clothing, books, stationery, and computing.
“Retailers continue doing everything they can to limit price rises for households, but as the Bank of England acknowledged, the £7bn in new costs flowing through from last year’s Budget has created an uphill battle for retailers. That is why over 60 retail CEOs recently wrote to the Chancellor with a call to ensure there are no further taxes rises on retail this Autumn. The planned business rates reforms present an opportunity to deliver a meaningful reduction in retail, hospitality and leisure bills, ensure no shop pays more as a result and help retailers keep prices low for customers.”
