UK Shop Price Inflation Slows to 1.4% as Retailers Absorb Rising Costs

UK shop-price inflation eased to 1.4% in September from 1.5% in August, with food inflation slowing to 2.5% and non-food inflation to 0.8%. Retail competition, promotions and discounting helped restrain prices, including meat, dairy and back-to-school goods, while poor European harvests raised fruit prices and high commodity costs kept chocolate and confectionery expensive. The British Retail Consortium warned that retailers are absorbing rising energy, employment and other business costs, with higher business rates due in April adding pressure. Retailers may have limited room to absorb further increases, risking higher prices for consumers as households tighten budgets.