UK Shop-Price Inflation Hits Two-Year High as Energy and AI Costs Rise

London, United Kingdom, 1 September 2026 – British shop-price inflation accelerated to its highest level in more than two years as energy, imported food and technology-component costs moved through retail supply chains. The British Retail Consortium's shop-price index rose 1.5% year on year in August, up from 0.9% in July and the strongest reading since February 2024. Food inflation increased to a four-month high of 2.8% from 2.2%, while non-food inflation reached 0.9%, compared with 0.2% previously.

Processed and ambient food prices reflected higher energy, commodity and import costs. Electrical-goods prices also rose as artificial-intelligence investment increased demand for memory chips and storage components. Broader consumer inflation stood at 2.9% in July, while the Bank of England expects it to peak at 3.2% in October and November. The figures should be considered within the broader setting of consumer inflation and retail margins, where short-term market reactions can differ from the longer-term economic effect.