UK Shop Prices Record Largest Monthly Increase in Nearly Two Years, Dashing Hopes of Peak Inflation

Deep News
Jan 27

Industry data released on Tuesday revealed that prices at major UK retailers rose at the fastest monthly pace since February 2024 this month, driven by a rebound in the cost of food, furniture, and health and beauty products. The Shop Price Index published by the British Retail Consortium (BRC) showed retail prices increased by 1.5% year-on-year in January, up from December's 0.7% rise. Food prices climbed 3.9% compared to a year earlier, accelerating from December's 3.3% and marking the largest increase since October. "Any suggestion that inflation has peaked finds no support in this data," stated BRC Chief Executive Helen Dickinson. "Shop price inflation surged this month as high business energy costs and the rise in National Insurance contributions continued to feed through to prices, with meat, fish, and fruit being particularly affected."

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