UK shop price inflation rose 1.5% year-on-year in January 2026, the highest level since February 2024 and well above expectations of a 0.7% increase, as higher business energy costs and the National Insurance hike continued to feed through to prices. Non-food prices rose 0.3% year-on-year in January, reversing a 0.6% decline in December and compared with a three-month average fall of 0.3%. Food inflation accelerated to 3.9% in January from 3.3% in December, exceeding the three-month average of 3.4%. Fresh food inflation picked up to 4.4% from 3.8%, while ambient food inflation rose to 3.1% from 2.5%, both above recent averages. BRC Chief Executive Helen Dickinson said shop price inflation jumped due to elevated energy costs and tax increases, with meat, fish and fruit particularly affected amid weak supply and stronger demand.