Shop price inflation went up by 0.9% in August compared to 0.7% in July, according to the latest figures from the British Retail Consortium (BRC).

Food inflation grew by 4.2% year-over-year, which was higher than the 4% reported in July, driven by increased prices for staples, such as eggs and butter.

Fresh food inflation increased to 4.1% in August from 3.2% last month, which was an above-average figure, impacted by weather conditions and higher operational costs.

However, ambient food inflation reduced to a 4.2% increase from 5.1% growth in the month prior.

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Helen Dickinson, CEO of the BRC, said: “Shop price inflation hit its highest rate since March last year, fuelled by food price rises.”

“This adds pressure to families already grappling with the cost of living. Staples such as butter and eggs saw significant increases due to high demand, tightening supply, and increased labour costs,” she added.

Retail executives have warned that higher business rates will lead to a push in inflation in a recent letter to Chancellor Rachel Reeves.

Dickinson added: “Retailers continue doing everything they can to limit price rises for households, but as the Bank of England acknowledged, the £7bn in new costs flowing through from last year’s Budget has created an uphill battle for retailers. That is why over 60 retail CEOs recently wrote to the Chancellor with a call to ensure there are no further tax rises on retail this autumn.”

Mike Watkins, Head of Retailer and Business Insight, NIQ, said: “The uptick in prices reflects several factors: global supply costs, seasonal food inflation driven by weather conditions, the conclusion of promotional activity linked to recent sporting events, and a rise in underlying operational costs.

“As shoppers return from their summer holidays, many may need to reassess household budgets in response to rising household bills,” he added.