Food prices have risen at the fastest rate since 2008 this month, as inflation causes fresh food prices to increase by 10.5%.
The data recorded by the British Retail Consortium (BRC) and NielsenIQ, comes as a result of food inflation following pressures from the war in Ukraine which has caused prices of animal feed, fertiliser, wheat and vegetable oils to jump.
This has led to fresh produce including milk and margarine seeing significant cost increases, with the price of a pint of milk breaking the £1 barrier for the first time ever at Sainsbury’s last week.
Shop price annual inflation hit 5.1% this month and is contributing to wider UK inflation levels, which some analysists predict could reach a staggering 18% next year.
“The situation is bleak for both consumers and retailers, but retail businesses will remain committed to supporting their customers through offering discounts to vulnerable groups, expanding value ranges, fixing prices of essentials, and raising staff pay,” BRC chief executive, Helen Dickinson said.
“However, as retailers also grapple with growing cost pressures, there is only so much they can shoulder.
“The new prime minister will have an opportunity to relieve some of the cost burden bearing down on retailers, like the upcoming increase in business rates, in order to help retailers do more to help their customers.”
NielsenIQ head of retailer and business insight, Mike Watkins added: “Inflation continues to accelerate and shoppers are already cautious about how much they spend on groceries, with a fall in volume sales at supermarkets in recent months.
“We can expect this level of food inflation to be with us for at least another six months but hopefully some of the input cost pressures in the supply chain will eventually start to ease.
“However, with further falls in disposable incomes coming this autumn as energy costs rocket again, retail spend will come under pressure in the all-important final quarter of the year.”
