Shop price inflation driven by food price rises
Shop price inflation increased to 0.9% year-on-year in August driven by an uptick in food prices.
The British Retail Consortium-NIQ Shop Price Monitor shows that food inflation rose to 4.2% in the month, against growth of 4% in July as items such as butter, eggs and chocolate become more expensive.
Subscribe to TRBHelen Dickinson, chief executive of the BRC, said: “Shop price inflation hit its highest rate since March last year, fuelled by food price rises. This adds pressure to families already grappling with the cost of living.
“Staples such as butter and eggs saw significant increases due to high demand, tightening supply, and increased labour costs.
“Chocolate also got more expensive as global prices of cocoa remain high owing to poor harvests.”
Meanwhile, non-food inflation increased to -0.8% year-on-year in August compared to a decline of -1% in July as prices for clothing, books, stationery and computing all fell.
Dickinson said: “Retailers continue doing everything they can to limit price rises for households, but as the Bank of England acknowledged, the £7bn in new costs flowing through from last year’s Budget has created an uphill battle for retailers. That is why over 60 retail CEOs recently wrote to the Chancellor with a call to ensure there are no further taxes rises on retail this Autumn.”
