The Federation of Wholesale Distributors (FWD) has warned a rise in fuel costs will cause grocery prices to spike as well.
The news comes as fuel prices hit a record high earlier this week, resulting in trade body, British Retail Consortium (BRC) telling the BBC, its members would pass on transportation costs to food industry customers.
“Food price inflation is already happening, but this is going to make it worse, because there’ll be charges passed on to customers and then obviously to end users as well,” chief executive James Bielby told the BBC.
According to figures from data firm Experian Catalist, the average cost of a litre of fuel at UK forecourts reached 165.2p on Tuesday, up nearly 3p on Monday’s 162.3p.
This resulted in the RAC revealing the jump was the “largest on records” dating back to the year 2000.
Hauliers have also warned their profit margins are being wiped out due to rising diesel bills. However, the average price of a litre of petrol increased from 156.4p on Monday to 158.2p on Tuesday.
Oil prices have spiked amid concerns over the reliability of supplies due to Russia’s invasion of Ukraine.