Food price inflation has hit a new peak of 12.4% in run-up to Christmas, as a result of the soaring price of basics such as meat, eggs, dairy and coffee.
A significant increase on October’s rate of 11.6%, this month’s figure, from the BRC-Nielsen Shop Price Index, is the highest food inflation rate since records began in 2005.
The increase in fresh foods prices strongly accelerated the rise, with inflation for this category climbing by 1%, to 14.3%. The rises are expected to continue into next year.
Ambient food inflation has also been on the rise, up to 10% from October’s 9.4%, while the overall non-food rate hit 4.8% in November.
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The rising cost of these essentials is likely to affect poorer households more significantly, as higher energy prices and stagnated wages put pressure on already-squeezed budgets.
British Retail Consortium chief executive Helen Dickinson said: “Winter looks increasingly bleak as pressures on prices continue unabated. Food prices have continued to soar, especially for meat, eggs and dairy, which have been hit by rocketing energy costs and rising costs of animal feed and transport.
Dickinson also said that while there were “signs” that cost pressures might begin to ease in 2023, “Christmas cheer will be dampened this year as households cut back on seasonal spending in order to prioritise the essentials”.
“Retailers continue to do all they can to support their customers and ensure everyone can enjoy the festive season by fixing prices of many essentials, offering discounts to vulnerable groups, raising pay for their own people, and expanding their value ranges.”
NielsenIQ head of retailer and business insight Mike Watkins added that, despite retailers offering seasonal savings as they look to encourage an uptick in shopper spend during peak, “shoppers will be managing their budgets more closely than at any time since the start of cost-of-living crisis”.
1 Comment. Leave new
I’m not sure how out of date the information is before it gets to print. But from what we are hearing and seeing it has to be closer to 25%. So many people are now using store own brands and shopping around so much more. Maybe some of this research needs to be conducted on the shop floor.