UK Shop Price Inflation Eases to 1.4% in September Amid Promotions
| Pair | Now | Since publish |
|---|---|---|
| GBPUSD | — | — |
| EURGBP | — | — |
- UK shop price inflation slowed to 1.4% in September.
- Retailers used promotions and absorbed costs.
- Broader market focus remains on energy-driven official inflation forecasts.
UK shop price inflation slowed in September, according to the British Retail Consortium (BRC), as retailers extended promotions and absorbed rising costs. The annual growth rate for shop prices eased to 1.4% from 1.5% in August, though it remained above the three-month average of 1.3%. Non-food inflation softened to 0.8%, while food inflation decreased to 2.5%. Despite this dip, market observers are reportedly focusing on the broader official inflation trajectory, which is forecast to climb above 4% next year. Energy prices, particularly oil and gas influenced by geopolitical events, are highlighted as a key factor driving future retail costs and overall inflation, potentially influencing UK interest rate and sterling expectations, as noted in recent Bank of England official statements [STORY_ID: 45025ed3-a2ca-408d-a485-59576a07e548].