Shop price inflation at highest rate since 2011
New figures have shown that shop price inflation has reached its highest rate since 2011 this month following mounting cost pressures in the global supply chain
The figures from the British Retail Consortium and NielsenIQ reveal that annual shop price inflation accelerated to 2.1% in March, up from 1.8% in February.
Helen Dickinson BRC chief executive, said: “Consumers were hit once again by rising prices, with March seeing the fifth consecutive month of inflation. There have been mounting cost pressures throughout the supply chain for some time, including rising wages, input costs, global commodity prices, energy, and transport. Many of these costs are beginning to be exacerbated by the situation in Ukraine, but the full impact on prices is yet to be seen. Wheat prices have risen sharply, while the rise in oil prices has not only impacted domestic energy costs, but also the costs of fertiliser and transporting goods.”
While food prices rose by 3.3% in March, up from 2.7% in February. non-food prices increased by 1.5%, up from 1.3% in the previous month.
Mike Watkins, head of retailer and business insight at NielsenIQ, said: “With cost-of-living increases accelerating, the next few months will be a difficult time for consumers. Rising food prices will start to impact what’s put in the shopping basket so supermarkets will need to adapt ranges to help shoppers manage what they spend on their weekly groceries. Whilst high street retailers will be competing for discretionary spend that’s coming under increasing pressure”
