UK shop price inflation remained unchanged at -0.7 per cent year-on-year last month against a decline of 0.7 per cent in January.

According to the latest inflation figures from the British Retail Consortium (BRC), non-food inflation decreased to -2.1 per cent in February compared to the same period of 2024 against a decline of -1.8 per cent in January.

Over the four-week-period, food inflation jumped by 2.1 per cent against growth of 1.6 per cent in January.

Helen Dickinson, chief executive of the BRC said that while shop prices remained in deflation, prices during the month saw the biggest increase in the past year.

“Breakfast, in particular, got more expensive as butter, cheese, eggs, bread and cereals all saw price hikes,” she added. “Climbing global coffee prices could threaten to push the morning costs higher in the coming months.”

She said that across non-food, month-on-month prices increased as the January sales promotions ended, especially in electricals and furniture.

However, discounting remained widespread in fashion as retailers attempted to attract customers amidst weak demand.

In non-food, month on month prices rose as January Sales promotions ended, especially in electricals and furniture.

But discounting was still widespread in fashion as retailers tried to entice customers against a backdrop of weak demand.

Dickinson said that inflation is likely to rise across the board throughout the year, with food prices to be over four per cent in the second half of the year, as geopolitical tensions run high and retailers face an increase in costs following the Autumn Budget.

“With many household bills increasing over the next few weeks, shoppers will be looking carefully at their discretionary spend and this may help keep prices lower at non-food retailers," said Mike Watkins, head of retailer and business insight at NielsenIQ, which helped put together the retail figures. "However the increase in food inflation is likely to encourage even more shoppers to seek out the savings available from supermarket loyalty schemes.”

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