London pre-open: Stocks to fall; UK food inflation hits 18-month high
By Michele Maatouk
Date: Tuesday 26 Aug 2025
(Sharecast News) - London stocks were set to fall at the open on Tuesday following the long weekend, as investors mulled the latest UK shop price data.
The FTSE 100 was called to open around 15 points lower.
The latest shop price index from the British Retail Consortium and NIQ showed that food inflation hit its highest level in 18 months in August.
Food inflation increased to 4.2% year-on year, from 4.0% in July.
BRC chief executive Helen Dickinson 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. Chocolate also got more expensive as global prices of cocoa remain high owing to poor harvests. There was some respite for parents ahead of the new academic year, with lower prices for clothing, books, stationery, and computing.
"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 taxes rises on retail this Autumn. The planned business rates reforms present an opportunity to deliver a meaningful reduction in retail, hospitality and leisure bills, ensure no shop pays more as a result and help retailers keep prices low for customers."
In corporate news, Halma said it had bought Netherlands-based gyroscopic locating system maker Brownline for €150m (£129m).
Founded in 1994, Brownline's main markets are energy, fibre connectivity and water.
Its sales are principally to North America, continental Europe and the UK, and it has offices in the Netherlands, the US, Canada, the UK and Australia.
Distribution giant Bunzl said on Tuesday that reported adjusted operating profits fell by 11.2% in the six months ended 30 June to £404.5m, as a one percentage point contraction in operating margins to 7.0% offset a 0.8% increase in revenues to £5.75bn.
Workspace Group announced a new five-year lease at its Kennington Park site in London, giving up its own headquarters to Wild Cosmetics as the office management company relocates to Camden.
Following its acquisition by Unilever, Wild Cosmetics is nearly doubling its space in Kennington Park from 7,500 square foot to 14,000 square feet, while Workspace will move its base operations to The Centro Buildings.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN