Finance
UK food prices and shop price inflation slow in February, survey shows
Published by Global Banking & Finance Review®
Posted on March 3, 2026
2 min readLast updated: March 3, 2026
Quick Summary
In February, UK shop price inflation slowed to 1.1% and food inflation eased to 3.5%, offering consumers some relief despite continued price rises. Non-food prices dropped, but retailers warn of potential cost pressures from new labour laws and geopolitical energy shocks.
UK Food Prices and Shop Price Inflation Slow, Offering Relief to Consumers
Recent Trends in UK Shop Price Inflation
LONDON, March 3 (Reuters) - British store chains raised their prices less quickly last month, offering some respite for consumers grappling with the cost of living, the British Retail Consortium said on Tuesday.
Annual shop price inflation cooled to 1.1% in February, below the 1.5% increase in the 12 months to January but in line with its three-month average, the BRC said.
Consumer Relief and Ongoing Challenges
"Households got some welcome relief in February as shop price inflation eased," said BRC chief executive Helen Dickinson. "While the direction of travel is promising, prices are still rising, and many consumers remain under pressure."
Key Inflation Figures and Sector Breakdown
Food Inflation Trends
- Food inflation of 3.5% in annual terms in February was down from 3.9% a month earlier
- Inflation for non-perishable food, like canned items, dropped to the lowest in four years at 2.3% from 3.1%
Non-Food Items and Retail Costs
- Prices for non-food items fell by 0.1% after rising by 0.3% in January
- New labour market laws could increase retailers' costs and push up inflation
Wider Economic Impact
Bank of England's Perspective
The Bank of England is monitoring food prices as it believes they play a significant role in shaping public inflation expectations. Britain's overall consumer price inflation rate fell to a nearly one-year low of 3.0% in January.
Global Factors Affecting Inflation
Energy Prices and Geopolitical Tensions
However, global energy prices surged on Monday due to fighting between the United States, Israel and Iran which could add to inflation if sustained.
(Reporting by Suban Abdulla
Editing by William Schomberg)
Key Takeaways
- •Shop price inflation cooled to 1.1% in February from 1.5% in January, aligning with the three‑month average, per BRC data (brc.org.uk).
- •Food inflation slowed to 3.5% year‑on‑year, down from 3.9% in January; ambient (non‑perishable) food inflation fell to its lowest in four years at 2.3% (theguardian.com).
- •Non‑food item prices declined by 0.1% in February, compared to a 0.3% increase in January (theguardian.com).
- •Retailers caution that new labour market laws may raise their costs, potentially reversing the easing of inflation (theguardian.com).
- •The Bank of England continues to monitor food prices closely, given their influence on inflation expectations; meanwhile, geopolitical tensions in the Strait of Hormuz are driving up global energy concerns, which could feed into inflation if sustained (bankofengland.co.uk).
References
Frequently Asked Questions about UK food prices and shop price inflation slow in February, survey shows
1How much did UK shop price inflation rise in February 2024?
Annual shop price inflation in the UK rose by 1.1% in February 2024, down from 1.5% in January.
2What was the trend in UK food price inflation in February?
Food inflation in February was 3.5% on an annual basis, down from 3.9% in January.
3How did prices for non-food items change in February?
Prices for non-food items fell by 0.1% in February after rising by 0.3% in January.
4What factors could impact future inflation according to the BRC?
New labour market laws could increase retail costs and potentially push inflation higher.
5Why is the Bank of England monitoring food prices?
The Bank of England monitors food prices because they significantly influence public inflation expectations.
