UK Shop Price Inflation Hits 1.5% Two-Year High as Energy Costs Lift Food Prices
Updated
Updated · OilPrice.com · Sep 1
UK Shop Price Inflation Hits 1.5% Two-Year High as Energy Costs Lift Food Prices
3 articles · Updated · OilPrice.com · Sep 1
Summary
UK shop price inflation accelerated to 1.5% in August from 0.9% in July, the highest level in more than two years, according to the British Retail Consortium.
Food prices drove much of the increase, with annual food inflation rising to 2.8% from 2.2% as higher energy and commodity costs began feeding through to consumers.
BRC chief Helen Dickinson said retailers face persistently high operating costs and warned they have limited room to absorb further increases without affecting investment, jobs and prices.
Economists expect broader UK inflation to keep rising into autumn and potentially peak around year-end; if the Strait of Hormuz stays closed, the Bank of England has warned inflation could exceed 4% and force rate hikes.