Britain's retail price inflation hits 18-month high in August

Xinhua
27 Aug 2025, 03:15 GMT+10

Food prices increased 4.2 percent year-on-year, while non-food prices decreased 0.8 percent from the same period last year.

LONDON, Aug. 26 (Xinhua) -- Britain's retail price rise hit a record high in August since March 2024, driven by food price hikes despite retailers' efforts to limit the increases, data from the British Retail Consortium (BRC) showed Tuesday.

Retail price inflation rose to 0.9 percent year-on-year in August, up from 0.7 percent in July and above the three-month average of 0.6 percent. During the month, Food prices increased 4.2 percent year-on-year, while non-food prices decreased 0.8 percent from the same period last year.

Mike Watkins, head of retailer and business insight of global marketing research firm NielsenIQ, attributed the uptick in prices to several factors, such as global supply costs, seasonal food inflation driven by weather conditions, and a rise in underlying operational costs.

The latest price increases have added pressure to families already grappling with the cost of living, said BRC Chief Executive Helen Dickinson.

"Retailers continue doing everything they can to limit price rises for households, but as the Bank of England acknowledged, the 7 billion pounds in new costs flowing through from last year's Budget has created an uphill battle for retailers," Dickinson noted.

Last week, over 60 chief executives of Britain's biggest retailers wrote to the Chancellor, calling for assurance that no further tax rises will be imposed on retail for this autumn.

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