FX.co ★ UK Shop Price Inflation Eases in February

UK shop price inflation rose by 1.1% year-on-year in February 2026, easing from 1.5% in January, as fierce competition among retailers limited price increases and consumers took advantage of widespread promotions in health, beauty and fashion. Non-food prices fell by 0.1% compared with a year earlier, reversing January’s 0.3% rise.

Overall food inflation edged down to 3.5% from 3.9% in January. Fresh food prices were 4.3% higher than a year ago, slightly below January’s 4.4% but still above the three-month average of 4.2%. In contrast, ambient food inflation dropped to 2.3%, its lowest rate in four years and a marked fall from 3.1% in January, reflecting lower global costs.

Helen Dickinson, Chief Executive of the British Retail Consortium, said: “Households got some welcome relief in February as shop price inflation eased. While the direction of travel is promising, prices are still rising, and many consumers remain under pressure.”