INFLATION in high street shops has hit a near two-year high, figures show.

Last month, prices were 1.5 per cent more than they were a year ago, according to the British Retail Consortium.

Inflation in high street shops has hit a near two-year high Credit: Getty

‘The months ahead look challenging for households, with rising bills putting further pressure on budgets’, says BRC boss Helen Dickinson Credit: Alamy

Groceries have seen the biggest rise, with food now costing 2.8 per cent more than in August 2025.

Long-life cupboard staples, such as tinned and packaged goods, are 2.5 per cent higher.

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And fresh food is three per cent more expensive.

Prices for non-food goods jumped a more modest 0.9 per cent.

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The BRC said increased costs for energy and raw materials were being passed on to customers.

BRC boss Helen Dickinson warned: “The months ahead look challenging for households, with rising bills putting further pressure on budgets.

“Retailers are facing high operating costs, which limits their ability to absorb further increases without impacting investment and jobs.

“If the Government is serious about supporting growth while keeping the cost of living in check, it must tackle the growing burden of business rates, packaging and employment taxes.”

The figures pile pressure on Andy Burnham as he prepares to put the cost of living at the heart of a his first Commons statement as PM tomorrow.

Burnham will promise to make everyday life more affordable “wherever we can”.