UK shop price inflation eased to 1.4% year-on-year in September 2026 from 1.5% in August, slightly below market expectations of 1.5%, although it remained above the three-month average of 1.3%. Food price inflation slowed to 2.5% from 2.8%, helped by promotions that lowered meat and dairy prices, while poor European harvests pushed up fruit prices and elevated commodity costs kept chocolate and confectionery prices high. Non-food inflation also eased to 0.8% from 0.9%, as strong discounting reduced the cost of back-to-school essentials. The British Retail Consortium said retailers are absorbing higher business rates, employment costs, energy bills and packaging taxes, but warned there is a limit to how much additional costs businesses can shoulder. Britain’s broader CPI inflation rose to 3.1% in August and is expected to surpass 4% in early 2027 as the Iran war drives higher energy prices.