UK shop price inflation rises to 2.1%, highest in two and a half years

UK shop price inflation reached 2.1% in October, up from 1.4% in September and its highest level in two and a half years, the British Retail Consortium said. Retailers have been absorbing higher energy and ingredient costs, but the rise suggests more are passing them on to shoppers, adding pressure ahead of the chancellor’s first budget.

Food inflation rose to 2.9% from 2.5%, while non-food inflation more than doubled to 1.7%. Brent crude recently reached $117 a barrel, compared with about $70 before the conflict involving the US, Israel and Iran began in February; UK consumer price inflation was 3.5% last month. A study of low-income families found that 73% of participants had bought reduced items, 62% had changed the food they buy and 63% had left the heating off despite feeling cold.