UK Food Inflation Accelerates as Retailers Face Higher Costs

UK grocery prices edged up in August to the highest in 18 months, as bad weather and poor harvests exacerbated the strain of higher operating costs hitting supermarkets.

The rate of food inflation rose to 4.2% from a year earlier, the highest level since February 2024, the British Retail Consortium said Tuesday. It was 4% in July. Staples such as butter and eggs saw significant price increases due to high demand, tightening supply and higher labor costs, while chocolate also became more expensive as poor harvests have pushed up global prices of cocoa.