Shop price inflation eases amid 'fierce' competition

2nd Mar 2026 07:36

(Sharecast News) - Shop price inflation eased by more than expected in February, industry research showed on Tuesday, supported by stiff competition on the high street and falling food costs.

According to the latest BRC-NIQ shop price monitor, shop price inflation rose by 1.1% last month, compared to growth of 1.5% in January. Consensus had been for a 1.2% uplift.

Within that, food inflation softened to 3.5% from 3.9%, while non-food prices fell 0.1%, reversing January's 0.3% uptick.

Helen Dickinson, chief executive of the British Retail Consortium, said: "Fierce competition between retailers kept price rises in check, with promotions across health, beauty and fashion.

"Falling global food costs also fed through, pushing food inflation down, with ambient food inflation dropping to its lowest level in four years."

Fresh food inflation increased to 4.3%, down marginally on January's 4.4% increase, but ambient food inflation slowed notably, falling to 2.3% from 3.1% a month previously.

Mike Watkins, head of retailer and business insight at NIQ, added: "Since the start of the year, we have seen some competitive pricing across both food and non-food channels, which is helping to bring down inflation.

"While the inclement weather and weak sentiment is making consumer demand rather unpredictable for retailers, at least shoppers are now seeing some of their cost of living pressures start to ease."