Economic Buzz: UK shop price inflation zooms to highest level in two and a half years

British Retail Consortium noted in a latest update that UK shop price inflation increased to 2.1% year on year in October, against growth of 1.4% in September. This is above the 3-month average of 1.6%. Non-Food inflation increased to 1.7% year on year in October, against growth of 0.8% in September. This is above the 3-month average of 1.1%. Food inflation increased to 2.9% year on year in October, against growth of 2.5% in September. This is above the 3-month average of 2.7%. Fresh Food inflation was unchanged at 2.6% year on year in October, against growth of 2.6% in September. This is below the 3-month average of 2.7% UK shop price inflation rose to its highest level in two and a half years. The dam is starting to break on the huge wave of costs retailers have absorbed over the last two years. Food inflation rose again, driven by ambient groceries, although retailers still delivered plenty of promotions on sweet treats ahead of Halloween.

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