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flag UK shop price inflation hit 3.9% in January 2026, fueled by rising food, energy, and labor costs.

flag UK shop price inflation rose to 3.9% in January 2026, driven by higher food prices—especially for meat, fish, and fruit—and ongoing cost pressures from increased energy bills and a 2024 national insurance hike. flag Non-food inflation also climbed to 0.3%, the strongest gain since early 2024. flag Retailers cited thin margins and rising labor costs, including a 10% increase in full-time staffing expenses, as key factors pushing prices up. flag Despite official CPI data showing inflation at 3.4% in December, retail figures suggest inflation may remain elevated into early 2026, challenging claims it has peaked.

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