UK shop price inflation continued to cool in February 2026, with the BRC Shop Price Index easing to 1.1% year-over-year, down from 1.5% in the previous month. The latest reading, updated on 3 March 2026, indicates that retail price pressures are moderating compared with the same period a year earlier.
The index measures the annual rate of change in shop prices, comparing February 2026 to February 2025, while the prior 1.5% figure reflected January’s prices against January a year earlier. The deceleration suggests that cost pressures at the retail level are easing, a development closely watched by businesses, consumers and policymakers assessing the trajectory of UK inflation.
With the year-over-year pace of shop price growth now running at 1.1%, retailers may face a shifting environment for pricing power and margins, while consumers could see some relief from the sharp price rises experienced in recent years. The latest data will likely feed into broader market expectations around the outlook for UK inflation and interest rates.
