UK shop price inflation hit 2.1% in October against a 1.6% forecast, and a £4.5bn five-year gilt auction cleared at 5.04%, the highest yield on such a sale since 2008. Both landed on the eve of Chancellor John Healey's Budget.
BRC economist Harvir Dhillon's Shop Price Monitor, released as retailers press Chancellor John Healey to reverse employment-cost and business-rates rises in Wednesday's Budget. Source
UK shop prices rose 2.1% year-on-year in October on the British Retail Consortium (BRC) and NIQ shop price index, against a 1.6% consensus and 1.4% in September. That is the fastest pace since February 2024, per BRC data. The same day, the Debt Management Office (DMO) sold £4.5bn of the 4.625% March 2032 gilt at an average yield of 5.04%, up from 4.95% at the previous five-year auction. Reuters called it the highest yield on a five-year sale since 2008. Both landed on the eve of Chancellor John Healey's Budget on Wednesday, and they are two ends of one story: the cushions that were hiding cost pressure are wearing thin.
