Food inflation rises for fourth consecutive month
Food inflation has increased for the fourth consecutive month in May as an uplift in wholesale beef prices pushes up the cost of steak on supermarket shelves.
According to the latest data from the British Retail Consortium, overall shop prices remain in deflation at 0.1% lower than the same time last year. This compares to a decline of 0.1% in April.
However, food prices have increased by 2.8% year-on-year against growth of 2.6% in April, with fresh food prices rising by 2.4% compared to an uplift of 1.8% in the prior month.
Meanwhile, non-food deflation decreased to 1.5% but the BRC said this slowed in categories such as fashion and furniture as retailers began to unwind heavy promotional activity.
Never Miss a Retail Update!Helen Dickinson, chief executive of the BRC, said: “With retailers now absorbing the additional £5 billion in costs from April’s increased Employer National Insurance contributions and National Living Wage, it is no surprise that inflation is rearing its head once again.
“Later this year, retailers face another £2 billion in costs from the new packaging tax, and there are further employment costs on the horizon from the implementation of the Employment Rights Bill. Government must ensure the Employment Rights Bill is fit for purpose, supporting workers’ rights while protecting jobs and investment for growth.
“If statutory costs continue to rise for retailers, households will have to brace themselves for more difficult times ahead as prices rise faster.”
