UK: Food inflation drives highest shop prices rise in more than a decade

UK: Food inflation drives highest shop prices rise in more than a decade. CC/Commons Attribution-Share Alike 2.0526350235 from TQ2531050255

In May shop prices rose at the fastest rate in more than a decade

New figures reveal the pressure put on retailers who have to pass on the cost of soaring import fees and rising energy bills.

According to The Guardian, consumers face further pain in the summer from high street and online price hikes.

Fresh food prices were the most affected by rising costs, with farmers reporting the escalating price of fertiliser since Russia’s invasion of Ukraine combined with the fact that they are struggling to cope with the rising cost of labour since Brexit.

The cost of fresh food shot up by an alarming 4.5% while ambient food, such as store-cupboard staples, rose by 4% for the month.

The British Retail Consortium (BRC) boss, Helen Dickinson, confirmed that “Retail prices edged up further as commodity, energy and transport costs continued to climb”

“It is likely to get worse before it gets better for consumers with prices continuing to rise and a further jump in energy costs coming in October.”

The BRC boss added: “Fresh food inflation hit its highest rate in a decade, with items like poultry and margarine seeing some of the largest increases due to soaring costs of animal feed and near-record global food prices.”

Mike Watkins, NielsenIQ’s head of retail and business insight, announced that: “The acceleration in food inflation reflects the fact that retailers can no longer absorb the full extent of increased supply-chain costs now hitting the industry.”

 

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Written by

Anna Ellis

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