Shop price inflation hits highest rate since 2008
New figures have shown that this month’s shop prices have hit their highest rate of inflation since 2008 as retailers struggle against upstream supply chain costs.
According to the British Retail Consortium and NielsenIQ in their monthly shop price index, shop price annual inflation has risen to 3.1% in the month, up from 2.8% in May, to mark the highest rate since September 2008.
Food price inflation has risen to 5.6% in June after fresh food prices jumped 6.2% on a year ago.
Helen Dickinson, BRC chief executive, said: “Last month households and businesses were hit by the highest rate of inflation since the 1980s as near-record commodity prices in energy, transport and food filtered through the supply chain. Food prices rose sharply, particularly for fresh foods such as cheese which has been affected by the spiralling costs of fertiliser and animal feed.
“Fierce competition means that retailers will continue to absorb as much of these costs pressures as possible and look for efficiencies in their businesses. Supermarkets are also expanding their value ranges to offer a wider choice for customers trading down and providing discounts to vulnerable groups.
“Retailers are working to find more ways to protect their customers from the worst effects of inflation, but if costs continue to spiral, Government may need to find ways to help retail businesses support their customers.”
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