Food inflation rose to 4.2% in August, the fastest pace in 18 months and the highest since February 2024, according to the BRC-NIQ Shop Price Monitor. Fresh food inflation climbed to 4.1% in the month, up from 3.2% in July, while ambient food inflation slowed to 4.2% year on year, down from 5.1% in July. Overall shop price inflation rose to 0.9% in August, with non-food prices deflating by 0.8%.\n\nThe Bank of England has said that the increase in national insurance contributions introduced in April helped push up food prices. Helen Dickinson, chief executive of the BRC, said: “Shop price inflation hit its highest rate since March last year, fuelled by food price rises.” She added that the rise in prices adds pressure to families already grappling with the cost of living. The BRC noted that retailers are doing what they can to limit price rises, but the £7 billion in new costs flowing through from last year’s budget has created an uphill battle for retailers.\n\nMore than 60 retail bosses, including Tesco, Sainsbury’s and Boots, warned the Chancellor last week that further tax rises in the autumn budget could run counter to plans to improve living standards. In a letter coordinated by the BRC, bosses said they expected food and drink inflation to reach 6% later this year. Mike Watkins, head of retailer and business insight at NIQ, said the uptick reflects several factors: higher global supply costs, seasonal food inflation driven by weather conditions, the end of promotional activity linked to recent sporting events, and higher underlying operating costs. He added that as shoppers return from their summer holidays, many may need to reassess household budgets in light of rising bills.