Published by Global Banking & Finance Review®
Posted on March 3, 2026
2 min readLast updated: April 2, 2026
Add as preferred source on GoogleIn 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.
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.
"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."
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.
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)
Annual shop price inflation in the UK rose by 1.1% in February 2024, down from 1.5% in January.
Food inflation in February was 3.5% on an annual basis, down from 3.9% in January.
Prices for non-food items fell by 0.1% in February after rising by 0.3% in January.
New labour market laws could increase retail costs and potentially push inflation higher.
The Bank of England monitors food prices because they significantly influence public inflation expectations.
Explore more articles in the Finance category
