Food Inflation has hit its highest point since October 2013 after months of surging prices, according to the British Retail Consortium (BRC).
According to data, food inflation accelerated to 2.7% in January, up from 2.4% in December, respectively, which is above the 12- and six-month average price growth rates of 0.5% and 1.1%.
Fresh food inflation slowed slightly in January to 2.9%, down from 3.0% in December and ambient food inflation soared to 2.4% in January, up from 1.7% in December.
“Food prices continue to rise, especially domestic products which have been impacted by poor harvests, labour shortages, and rising global food prices,” BRC chief executive Helen Dickinson OBE said.
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“Retailers are working hard to cut costs, but it would be impossible to protect consumers from any future rises.
“As commodity prices, energy prices and transportation costs continue to rise, it is inevitable that retail prices will continue to follow in the future.”
NielsenIQ head of retail and business insight Mike Watkins added: “NielsenIQ research this month shows nearly half of all households are saying that their most important concern at the moment is the rising cost of living.
“This will mean stores will need to encourage cash-strapped customers to keep shopping and despite the increase in shop prices, retailers are responding by keeping price increases as low possible for as long as possible.”
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