The pace of price increases across UK retail outlets reached a two-year high in August, according to the latest data from the British Retail Consortium and research firm NIQ. The annual inflation rate for shops climbed to 1.5%, a notable increase from the 0.9% recorded in July.

Retailers report that the primary drivers of this trend are rising energy costs and supply chain constraints. Food prices, specifically for tinned and packaged goods, saw a sharp increase, rising by 2.5% compared to 1.1% the previous month. Fresh produce inflation remains elevated at 3%, with industry analysts pointing to the impact of a hot, dry summer on growers and the ongoing burden of high fuel costs. Additionally, the technology sector is experiencing upward price pressure, which the report attributes to the high global demand for AI-related chips.

While the data provides a clear picture of rising costs for consumers, it does not explicitly state how long these inflationary pressures are expected to persist or how retailers plan to mitigate these costs for shoppers in the coming months.