Food inflation has soared to 5.6% in June, up from 4.3% in May, driven by fresh food prices rising 6.2% in June last year, the UK has seen the highest fresh food inflation rate since May 2009. according to the latest BRC-NielsenIQ Shop Price Index data.
According to the index, shop prices have also hit the highest level of inflation in 14 years, as businesses try to mitigate rising supply chain costs and the ongoing cost-of-living crisis.
READ MORE: BRC and Usdaw respond to staggering 11.7% RPI inflation
Shop price annual inflation rose to 3.1% this month, up from 2.8% in May, the highest rate of inflation since September 2008.
“Last month, households and businesses were hit by the highest rate of inflation since the 1980s, as near-record commodity prices in energy, transport and food filtered through the supply chain,” British Retail Consortium chief executive Helen Dickinson said.
“Food prices rose sharply, particularly for fresh foods such as a cheese, which has been affected by the spiralling costs of fertiliser and animal feed.
“As households face the biggest real terms cut in income since the 1970s, and businesses grapple with upstream supply chain costs, retailers remain focused on protecting their customers.
“Fierce competition means retailers will continue to absorb as much of these cost pressures as possible.”
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