Food inflation increased in February as prices saw the biggest increase in the last year, new data shows.

According to the latest British Retail Consortium (BRC)-NIQ (NielsenIQ) shop price index, food inflation rose to 2.1% year-on-year in February, against a decline of -1.8% in January.

According to BRC chief executive Helen Dickinson, breakfast products in particular “got more expensive”, as butter, cheese, eggs, bread and cereals “all saw price hikes”.

She added that climbing global coffee prices “could threaten to push the morning costs higher in the coming months”.

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NielsenIQ head of retailer and business insight Mike Watkins added that the increase in food inflation is “likely to encourage even more shoppers to seek out the savings available from supermarket loyalty schemes“.

Fresh food inflation also increased to 1.5% year-on-year in February and ambient food inflation rose to 2.8%. Meanwhile, shop price inflation was unchanged at -0.7% over the period.

Dickinson warned: “Inflation will likely rise across the board as the year progresses with geopolitical tensions running high and the imminent £7bn increase in costs from the Autumn Budget and the new poorly designed packaging levy arriving on the doorsteps of retailers. We expect food prices to be over 4% up by the second half of the year.”

She said that if the government wants to “keep inflation at bay”, it must “mitigate the swathe of costs facing the industry”.

“It can start by ensuring no shop ends up paying more than they already do under the new business rates proposals, and delaying the new packaging taxes,” said Dickinson.