TOP NEWS: UK shop prices up at record pace amid rampant food inflation

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UK shop price inflation hit a record high in July, figures from the British Retail Consortium showed on Wednesday, with rampant food prices leading the way.

UK shop prices surged 4.4% yearly in July, picking up speed from a 3.1% rise in June, according to latest BRC-NielsenIQ tracker.

July's growth rate was ahead of the 12- and six-month averages of 1.5% and 2.8%, respectively. It was the chunkiest shop price inflation rate since the series began in 2005.

Food inflation quickened to 7.0% in July from 5.6% in June. Fresh food inflation alone surged to 8.0% from 6.2%. Ambient food inflation accelerated to 5.7% from 4.8%.

BRC Chief Executive Helen Dickinson commented: ‘July saw the highest rate of shop price inflation since our index began in 2005, as heightened cost pressures continued to filter through to customers.

‘Rising production costs – from the price of animal feed and fertiliser to availability of produce, exacerbated by the war in Ukraine – coupled with exorbitant land transport costs, led food prices to rocket to 7%. Some of the biggest rises were seen in dairy products, including lard, cooking fats and butter. Meanwhile, non-food prices were hit by rising shipping prices, production costs and continued disruption in China.’

Non-food inflation accelerated to 3.0% in July from 1.9% in June, ahead of the 12-month average of 0.8%. It was also a record high, beating April's 2.2% growth.

Dickinson added: ‘As inflation reaches new heights, retailers are doing all they can to absorb as much of these rising costs as possible and to look for efficiencies in their businesses and supply chain. With households enduring a cost-of-living crunch, retailers are expanding their value ranges to offer the widest variety of goods to those most in need, providing discounts to vulnerable groups, and raising staff pay. Nevertheless, households and businesses must prepare for a difficult period as inflationary pressures hit home.’

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