UK shop prices are growing at the fastest rate in over 10 years

Over-the-counter prices in the UK rose at the fastest pace in more than a decade in May, primarily due to accelerated food inflation.

According to the latest retail price index from the UK Retail Consortium (BRC) and NielsenIQ, retail inflation in May rose to 2.8%, the highest since July 2011.

He said this accelerated from a 2.7% rise in April, as soaring food prices offset discounts and promotions on clothing and household items.

“Retail prices have risen further as commodity, energy and transportation costs continue to rise,” said Helen Dickinson, CEO of BRC.

“Fresh food inflation has reached its highest level in the last decade, and items such as poultry and margarine are on the rise due to soaring animal feeds and close to global food price records,” she said. Added.

Food inflation jumped from 3.5% in April to 4.3% in May, the highest level since April 2012.

Fresh food prices rose 4.5%, while surrounding foods, such as staple foods in store cupboards, rose 4% in a month.

Retailers are “working hard to protect their customers from these rising costs, especially when homes are affected by significant rises in household energy prices,” Dickinson said.

But she said, “Prices continue to rise and energy costs will rise further in October, which is likely to make things worse before they get better for consumers.”

In particular, retailers whose supply chains have been affected by the war in Ukraine and the blockade of COVID-19 in China by the Chinese Communist Party’s (CCP) Zero-COVID policy “have little room for operation,” she said. .. ..

Mike Watkins, Head of Retailers and Business Insights at Nielsen IQ, said:

“Promotions have remained at lower prices than ever before, and price cuts, rather than volume-based offers such as multi-buy, have become the best way to help shoppers manage their households.”

Last week, the UK government announced a £ 15 billion ($ 19 billion) bailout package for households suffering from rising bills, funded by a temporary storm tax on oil and gas giants.

“Many people will welcome the government’s latest announcement of support, but future uncertainty in energy prices means they may only provide temporary rest,” Dickinson said. ..

PA Media contributed to this report.

Alexander Chan


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