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The British Retail Consortium-NIQ Shop Price Monitor puts annual UK shop price inflation at 1.4% for the period 1–7 September 2026, down from 1.5% in August. That is slower price growth, not a general fall in prices: the monitor recorded an overall 0.1% rise month on month.
What changed in September?
The BRC’s annual rate compares shop prices with the same period a year earlier. The September reading was below August’s 1.5%, but the index’s three-month average was 1.3%.
| Category | Annual rate, September 2026 | August 2026 | Three-month average |
|---|---|---|---|
| All shop prices | 1.4% | 1.5% | 1.3% |
| Food | 2.5% | 2.8% | 2.5% |
| Non-food | 0.8% | 0.9% | 0.6% |
These are annual changes reported by the BRC on 29 September 2026. Food inflation was higher than non-food inflation, while the all-shop rate sat between the two.
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No, not overall in the monthly comparison. The monitor’s month-on-month figures measure changes in price levels: all shop prices rose 0.1% in September, food prices fell 0.2%, and non-food prices rose 0.2%.
The distinction is important. An annual inflation rate can ease because prices are rising more slowly than a year earlier, even while the price level increases from one month to the next. September’s lower annual rate therefore does not mean the typical item became cheaper overall.
What happened to food prices?
Annual fresh food inflation eased to 2.6% from 3.0%, while ambient food inflation eased to 2.2% from 2.5%. The BRC said fresh food inflation was below its three-month average and ambient food inflation was above its average. The release does not provide those category averages as figures.
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In its explanation, BRC Chief Executive Helen Dickinson pointed to promotions that reduced meat and dairy prices, poor European harvests that pushed fruit prices up, and high global commodity prices that kept chocolate and confectionery prices elevated. These are the BRC’s account of contributing pressures, rather than separately quantified causal estimates.
Why did non-food inflation ease?
The BRC attributed lower prices for some non-food goods to strong discounting on back-to-school essentials, including books, stationery, footwear and electricals. Annual non-food inflation was 0.8%, compared with 0.9% in August; its month-on-month price level nevertheless rose 0.2%.
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Dickinson also cited competition between retailers and promotions as factors helping shoppers find value. NIQ’s Mike Watkins said retailers had maintained promotions and some had introduced price cuts to support demand. His comments about tighter household budgets expected in the fourth quarter and retailers absorbing cost increases are forecasts and views, not measured outcomes.
What does the BRC Shop Price Monitor measure?
The BRC-NIQ monitor tracks a selected basket of 500 frequently purchased food and non-food items, online and in stores. According to the BRC’s methodology overview, NIQ compiles monthly prices from the same stores across five large urban areas, gathering around 6,500–7,000 price points per period. Product classes are weighted using household expenditure data.
The index is intended to indicate the direction of prices in a defined part of retail. It is not the ONS Consumer Prices Index (CPI), and it does not cover all household costs, such as housing and services. Nor can it show exactly how much an individual household’s complete shopping basket has changed: that depends on what people buy and where they shop. The BRC says its monitor is published ahead of official ONS statistics.
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What does 1.4% mean for a household?
It means the prices in the monitor’s selected basket were 1.4% higher than a year earlier on the annual comparison. It does not mean every product rose by 1.4%, or that every household’s grocery bill increased at that rate. A household that buys more of categories rising faster, changes brands or shops at different retailers may experience a different change.
To understand your own spending, compare the prices and quantities of the items you actually buy over time. Treat the BRC figure as a focused indicator of shop-price trends, not a personal inflation calculator or a substitute for the broader official CPI measure.
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