BRC-NIQ SHOP PRICE MONITOR – AUGUST 2025
The Shop Price Index has been renamed the Shop Price Monitor.
This makes the name consistent with other BRC economic monitors.
No data has been changed in this renaming.
Period Covered:
01 – 07 August
2025
- Shop price inflation increased to 0.9% year on year in
August, against growth of 0.7% in July. This is above the 3-month
average of 0.6%.
- Non-Food inflation increased to -0.8% year on year in August,
against a decline of -1.0% in July. This is above the 3-month
average of -1.0%.
- Food inflation increased to 4.2% year on year in August,
against growth of 4.0% in July. This is above the 3-month average
of 3.9%.
- Fresh Food inflation increased to 4.1% year on year in
August, against growth of 3.2% in July. This is above the 3-month
average of 3.5%.
- Ambient Food inflation decreased to 4.2% year on year in
August, against growth of 5.1% in July. This is below the 3-month
average of 4.5%.
|
|
Overall SPM
|
Food
|
Non-Food
|
|
% Change
|
On last year
|
On last month
|
On last year
|
On last month
|
On last year
|
On last month
|
|
Aug-25
|
0.9
|
0.2
|
4.2
|
0.4
|
-0.8
|
0.0
|
|
Jul-25
|
0.7
|
0.2
|
4.0
|
0.4
|
-1.0
|
0.1
|
Note: Month-on-month % change refers to changes in the
level of prices.
Helen Dickinson, Chief Executive of the BRC,
said:
“Shop price inflation hit its highest rate since March last year,
fuelled by food price rises. This adds pressure to families
already grappling with the cost of living. Staples such as butter
and eggs saw significant increases due to high demand, tightening
supply, and increased labour costs. Chocolate also got more
expensive as global prices of cocoa remain high owing to poor
harvests. There was some respite for parents ahead of the new
academic year, with lower prices for clothing, books, stationery,
and computing.
“Retailers continue doing everything they can to limit price
rises for households, but as the Bank of England acknowledged,
the £7bn in new costs flowing through from last year's Budget has
created an uphill battle for retailers. That is why over 60
retail CEOs recently wrote to the Chancellor with a call to
ensure there are no further taxes rises on retail this Autumn.
The planned business rates reforms present an opportunity to
deliver a meaningful reduction in retail, hospitality and leisure
bills, ensure no shop pays more as a result and help retailers
keep prices low for customers.”
Mike Watkins, Head of Retailer and Business Insight, NIQ,
said:
“The uptick in prices reflects several factors:
global supply costs, seasonal food inflation driven by weather
conditions, the conclusion of promotional activity linked to
recent sporting events, and a rise in underlying operational
costs. As shoppers return from their summer holidays, many may
need to reassess household budgets in response to rising
household bills.”
