Overview
- Shop price inflation rose to 1.5% year over year from 0.7% in December, marking the fastest pace since February 2024.
- Food inflation picked up to 3.9%, with fresh food up 4.4% on tighter supply and stronger demand for meat, fish and fruit.
- Non-food categories turned positive at 0.3% after a 0.6% fall in December, with furniture, flooring, and health and beauty seeing higher prices.
- BRC chief executive Helen Dickinson said the figures do not support claims that inflation has peaked, citing thin retail margins and policy-driven costs.
- Analysts cautioned the resurgence could weigh on consumer confidence and influence Bank of England judgments, though promotions and selective supermarket price cuts offer limited relief.