UK shop price inflation accelerates to 1.5% in August on energy and AI chip costs

UK in-store inflation rose to 1.5% year-on-year in August, up from 0.9% in July, driven by higher energy costs and AI chip demand pushing up technology prices. This marks the fastest pace in two years, signaling renewed inflationary pressure in the UK consumer sector. The data suggests a potential shift in the inflation trajectory, which could influence Bank of England policy expectations.