Food inflation rose in the New Year, according to the latest figures from the British Retail Consortium (BRC) taken between 1 and 7 January.

The BRC said the rise in prices was due to higher business energy costs and the increase in National Insurance contributions.

Shop price inflation increased to 1.5% year-over-year this month, compared to a growth of 0.7% in December, which was above the three-month average of 0.9%.

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Food inflation went up to 3.9% in January on a yearly basis, against a growth of 3.3% in December. This was above the three-month average food inflation of 3.4%.

Fresh food inflation grew to 4.4%, compared to a growth of 3.8% in the month prior, staying above the three-month average of 3.9%.

Ambient food inflation also increased to 3.1% in January compared to a growth of 2.5% in December.

Helen Dickinson, CEO of the BRC, said meat, fish and fruit were affected due to “weak supply and stronger demand”.

“Retailers do what they can to keep prices down in a competitive market, but thin margins and rising costs of Government policy make it harder,” she said.

“A good place to look is the spiralling energy charges, especially non-commodity levies, which are raising operating costs, squeezing margins and flowing through into retail prices.”