UK shop prices have entered deflation for the first time in nearly three years, falling by 0.3% in August as retailers heavily discounted summer stock due to poor sales and bad weather. This marks a shift from the persistent price increases seen recently and offers some relief to households. The British Retail Consortium (BRC) highlighted that non-food prices dropped significantly, particularly in fashion and household goods. While food inflation has eased, the outlook remains uncertain due to potential impacts from climate change - on harvests- and geopolitical tensions, which could reignite inflationary pressures in the future.