Shop price inflation in the UK continued to rise in July, up 0.7% compared to 0.4% in June, according to the latest figures from the British Retail Consortium (BRC).

Households were under added pressure as food inflation went up by 4% compared to a 3.7% increase last month. This was above the 3-month average of 3.5%.

Helen Dickinson, chief executive of the BRC, said: “Families will have seen their food bills increase as food price inflation rose for the sixth consecutive month.”

“Staples such as meat and tea were hit the hardest, as wholesale prices for both categories have been hit by tighter global supplies. This has helped push up overall shop prices.”

However, fresh food inflation went down by 3.2% from a 3.2% increase last month, while ambient food inflation rose by 5.1% compared to 4.3% growth in June.

Subscribe to Grocery Gazette for free

Sign up here to get the latest grocery and food news each morning

The news follows consumer expectations falling due to the rising costs across the UK.

Some retailers blame higher national insurance fees and increased living wages for the inflation rise, as well as increased business rates.

Dickinson added: “If the Government wants to support struggling families, it must think carefully about the next budget. Retailers are doing everything possible to protect their customers from the worst of the inflationary pressures, but the £7bn cost to retail of last year’s budget forced most retailers to raise prices.

“Further tax rises will ultimately hurt households, locking in inflation and forcing people to pay higher prices to put food on the table.”