UK shop price inflation slowed to 1.4% year-on-year in September 2026 from 1.5% in August, slightly below the 1.5% market expectation but above the three-month average of 1.3%. Food inflation eased to 2.5% from 2.8%, helped by promotions that lowered meat and dairy prices, while poor European harvests lifted fruit prices and higher commodity costs kept chocolate and confectionery expensive. Non-food inflation declined to 0.8% from 0.9% as strong discounting reduced the cost of back-to-school essentials. The British Retail Consortium said retailers were absorbing higher business rates, employment costs, energy bills and packaging taxes, and urged Finance minister John Healey to help limit business-rate costs in the government's October 28 tax and spending plan. Britain's broader CPI inflation reached 3.1% in August and is expected to exceed 4% in early 2027 as the Iran war pushes energy prices higher.