UK shop price inflation rose to 2.1% year-on-year in October 2026 from 1.4% in September, marking the fastest increase since February 2024 and exceeding forecasts of 1.6%. Food price inflation accelerated to 2.9% from 2.5%, its highest since April, while ambient food inflation climbed to 3.2% from 2.2%, the highest since September 2025. Fresh food inflation held at 2.6%, while non-food inflation rose to 1.7% from 0.8%, its highest since December 2023, driven by furniture, flooring and home improvement goods. The British Retail Consortium warned that retailers face rising transport, energy, employment and packaging costs, urging Finance Minister John Healey to lower property and employment costs in the upcoming budget. Separately, UK consumer price inflation reached 3.5% in September, an 11-month high. BOE Governor Andrew Bailey said businesses had absorbed higher energy costs linked to the US-Iran war, while the Food and Drink Federation expects food inflation to peak next year.