British retailers raised prices by the most in more than two years last month, ​as higher energy prices pushed up the cost ‌of some processed food and the artificial intelligence boom raised the cost of consumer electronics which use similar components.

The ​British Retail Consortium said its monthly shop price ​index increased to an annual 1.5 per cent in ⁠August from 0.9 per cent in July, reaching its highest ​since February 2024.

“The impact of higher energy, input and ​commodity costs is beginning to filter through into prices, particularly for ambient foods which are typically imported and processed,” BRC ​Chief Executive Helen Dickinson said.

“In non-food, electrical prices ​rose amid the ongoing AI boom, which is forcing up the ‌price ⁠of memory chips and storage,” she added.

  • BRC food price inflation rose to a four-month high of 2.8 per cent in August from 2.2 per cent in July
  • BRC non-food inflation rose ​to 0.9 per cent in ​August from ⁠0.2 per cent in July, its highest since February 2024
  • Consumer price inflation measured by the ​Office for National Statistics — which covers more ​goods ⁠and services than the BRC measure — rose to a four-month high of 2.9 per cent in July
  • The Bank of ⁠England forecasts ​CPI will peak at 3.2 per cent ​in October and November, while food price inflation will reach 3.5 per cent ​in December