A national retail body has expressed concern over the latest figures from the BRC-NIQ Shop Price Index for February 2025.

The British Independent Retailers Association (Bira), which works with over 6,000 independent businesses of all sizes across the UK, said while overall shop prices remain in deflation, the rise in food prices is worrying for retailers and consumers alike.

The BRC (British Retail Consortium) report also revealed:

• Shop price inflation was unchanged at -0.7 per cent year on year in February, against a decline of -0.7 per cent in January. This is above the three-month average of -0.8 per cent.
• Non-Food inflation decreased to -2.1 per cent year on year in February, against a decline of -1.8 per cent in January. This is in line with the three-month average of -2.1 per cent.
• Food inflation increased to 2.1 per cent year on year in February, against growth of 1.6 per cent in January. This is above the three-month average of 1.8 per cent.
• Fresh Food inflation increased to 1.5 per cent year on year in February, against growth of 0.9 per cent in January. This is above the three-month average of 1.2 per cent.
• Ambient Food inflation increased to 2.8 per cent year on year in February, against growth of 2.5 per cent in January. This is above the three-month average of 2.7 per cent.

Andrew Goodacre (pictured), Bira CEO said: "The retail market is showing a split with essential categories such as food showing inflation and the non-essential sectors having to reduce prices (deflation) to drive sales.

“It is well known in retail that higher inflation in essentials (food, utilities and petrol are all increasing) has a disproportionate impact on consumer confidence and significantly reduces demand for the non-essential items.

"The extra costs for employers and the 140 per cent increase in business rates from April will add to inflation and continue to damage the wider high street supported by independent retailers."

Helen Dickinson, chief executive, British Retail Consortium, said: "While shop prices remained in deflation in February, prices on the month saw the biggest increase in the last year.

"Inflation will likely rise across the board as the year progresses with geopolitical tensions running high and the imminent £7bn increase in costs from the Autumn Budget and the new poorly designed packaging levy arriving on the doorsteps of retailers.”