'Fierce competition' kept February retail price rises in check

Shop price inflation eased in February as "fierce competition between retailers kept price rises in check", says Helen Dickinson, Chief Executive of the British Retail Consortium (BRC).

Shop inflation overall was 1.1% higher in February than a year earlier, compared to an increase of 1.5% in January. This is in line with the three-month average inflation of 1.1%, according to the BRC and NIQ.

Dickinson commented that households got some "welcome relief" as shop price inflation eased in February, with promotions across fashion, health and beauty.

This is reflected in the fact that non-food prices fell 0.1% year-on-year in February, against a growth of 0.3% in January, aligning with the three-month average of -0.1%.

Dickinson added: “While the direction of travel is promising, prices are still rising, and many consumers remain under pressure. Retail operates on thin margins yet has faced relentless tax rises in recent years.

"The Employment Rights Act could add further complexity if secondary legislation is implemented without an eye firmly on the potential consequences for the cost of doing business and hence the cost of living. Poor implementation decisions by government would stymie job creation and push inflation back up."

In January 2026 shop inflation overall was 1.5% higher than a year earlier – a significant increase on December’s 0.7% and the three-month average of 0.9% – as high business energy costs and the hike to National Insurance fed through to prices, according to the British Retail Consortium (BRC) and NIQ.