London Daily

Focus on the big picture.
Tuesday, Aug 18, 2026

Shop prices growing at fastest rate in more than a decade as food inflation worsens

Shop prices growing at fastest rate in more than a decade as food inflation worsens

There is more bad news for shoppers and experts say that the situation will get worse before it gets better.

Shop prices grew at the fastest rate in more than a decade during May, spurred on by rapidly-accelerating food inflation.

The figures come from the latest BRC-NielsenIQ Shop Price Index, which looks at baskets of food and non-food items and measures the change in price over time.

It found that retail price inflation was 2.8% in May - the highest since July 2011 - and experts have said the situation for shoppers will get "worse before it gets better".

Helen Dickinson, chief executive of the British Retail Consortium, said: "Retail prices edged up further as commodity, energy and transport costs continued to climb.

"It is likely to get worse before it gets better for consumers with prices continuing to rise and a further jump in energy costs coming in October."

The 2.8% rise in May came after April's 2.7% rise, with rising food prices offsetting the discounts and promotions offered on clothing and homeware.

Food inflation was up 4.3% in May from 3.5% in April, the highest level since April 2012.

Fresh food prices grew by 4.5% while ambient food, such as store-cupboard staples, rose by 4% over the month.

'Near-record global food prices'


Ms Dickinson said: "Fresh food inflation hit its highest rate in a decade, with items like poultry and margarine seeing some of the largest increases due to soaring costs of animal feed and near-record global food prices.

"Retailers have been working hard to protect their customers from these rising costs, particularly at a time when households are being impacted by a huge rise in household energy bills."

Mike Watson, head of retailer and business insight at NielsenIQ, said: "The acceleration in food inflation reflects the fact that retailers can no longer absorb the full extent of increased supply chain costs now hitting the industry.

"Promotions remain close to an all-time low and price cuts rather than volume-based offers such as multibuy are now the best way for retailers to help their shoppers manage their household budgets."

Private sector growth expected to flatten


It came days after the Office for National Statistics revealed that budget pasta prices rose 50% between April last year and April this year, with the cost of bread and minced beef also costing more.

Meanwhile, the CBI's latest Growth Indicator has warned that private sector activity is expected to be broadly flat in the three months to August, at 1% - marking the lowest expectation for growth in the sector since February last year.

Manufacturing is expected to grow 23% but distribution sales are expected to increase by only 3%. Business and professional services activity is expected to contract by 1%, while consumer services activity is expected to fall by 23%.

Alpesh Paleja, CBI lead economist, said: "The chancellor's new targeted support package for low-income households is the right thing to do and will help people facing real hardship. But addressing faltering business confidence will require more action.

"Amid a worsening economic outlook, the government must work with business on a genuine plan for increasing business investment and get growth going again, particularly as costs continue to soar."

Newsletter

Related Articles

0:00
0:00
Close
China’s Lifelike AI Humans Move From Livestreams Into Real-World Service Roles
UK Government Rolls Out £5.8 Billion Regional Investment Programme to Revive High Streets
AstraZeneca Ends Late-Stage Lung Cancer Trial After Data Shows No Survival Benefit
London Stocks Fall for Sixth Day as Bond Yields and Middle East Tensions Weigh on Markets
UK Government Rewrites Planning Rules to Accelerate Housing Near Transport Hubs
UK Wildfires Spread Across Southern England as Met Office Issues Severe Heat Warnings
British Doctors Warn Cancer Care Is at Risk as Hospitals Reject More Than a Quarter of Urgent Referrals
UK Hospitals Suspend Critical Care as Extreme Heat Exposes Infrastructure Failures
Sarah Ferguson Reportedly Retreats to Late Ex-Boyfriend's Swiss Chalet
Cristiano Ronaldo and Georgina Rodríguez Sign Prenup Protecting Their Separate Fortunes
Thieves Steal Antonello da Messina Renaissance Masterpieces From Sicilian Museum
Better.com Founder Who Fired 900 Employees on Zoom Is Ousted as CEO
Italian Speed Camera Issues Nearly 32,000 Fines in 10 Weeks, Worth More Than €3 Million
AI Manager at San Francisco Store Recommends Firing Human Employee
Google Launches Pixel 11 With Gemini AI at the Center of Its Hardware Strategy
Campaigners Press Government to Strengthen Rights for Four Million Gig Workers
Government Considers Higher Private Rents to Spread Asylum Accommodation Across UK
UK Moves to Protect Historic Pubs From Conversion Into Housing and Offices
Nigel Farage Wins Clacton By-Election to Return to House of Commons
British Manufacturers Report Rising Cybersecurity Threats Across Industrial Supply Chains
Royal Navy Increases Monitoring of Russian Ships in UK Waters by 25 Percent
England Adds More Than 350 Medical Training Posts to Strengthen NHS Capacity
NHS Waiting Lists Over 52 Weeks Rise by More Than 11,000 Patients
Brent Crude Near $88 Raises Fresh UK Energy Cost Concerns
UK Treasury Warns Prolonged Strait of Hormuz Disruption Could Cut 2027 Growth to 0.3 Percent
UK Economy Grows 0.4 Percent in Second Quarter as Energy and Inflation Risks Persist
UK Heatwave Triggers Emergency Alert as Government Unveils £65 Million Farm Support Package
Reform UK Unveils Plan to Cut Welfare Spending by More Than £50 Billion a Year
Prime Minister Andy Burnham Praised Extinction Rebellion for Doing a 'Great Service'
UK Wildfire Phone Alert Triggers Backlash as Users Switch Off Emergency Warnings
Heathrow Roads Reopen After Burst Water Main Floods Access to Terminals 2 and 3
Former NBA Players Enes Kanter Freedom and Royce White Say They Will Enter 2027 WNBA Draft
Former Cambridge Professor Jason Arday Found Dead Days After Resigning Amid Plagiarism Row
US Appeals Court Rules AI Agent's Website Actions Are Legally Attributed to the User
France's Constitutional Council Blocks Social Media Ban for Children Under 15
Liechtenstein Changes Royal Succession Rules to Allow Women to Inherit the Throne
Women Allege Rape and Sexual Abuse at British Army College for Teenage Recruits
Minnesota: Two independent investigators posed as Muslims (one wearing a burqa) and showed how they could vote in elections without identification.
UK Prime Minister Andy Burnham Takes Regional Tour to Highlight Local Infrastructure and Environmental Problems
Nigel Farage Wins Clacton By-Election to Return to the House of Commons
Bank of England Warns Rising Inflation Could Squeeze UK Household Incomes
UK Government Announces £65 Million Aid Package for Farmers Hit by Severe Drought
UK Economy Grows 0.4% in Second Quarter Despite Energy Market Pressures
UK Issues Emergency Alert as Severe Wildfires Spread Across England and Wales
UK and Finland Discuss European Defence and Continued Support for Ukraine
Nigel Farage Wins Clacton By-Election to Return to the House of Commons
UK Government Deploys Military to Help Fight Wildfires and Bans Disposable Barbecues
UK Records Hottest Day of the Year as Fifth Summer Heatwave Peaks in Southern England
UK Condemns Houthi Actions and Warns of Red Sea Threat to Global Trade
UK and Solomon Islands Open Wildlife Photography Exhibition in Honiara
×