According to the latest data from the British Retail Consortium (BRC), UK food inflation accelerated to 4.3% in May, the highest inflation rate since April 2012.
Food inflation is up from 3.5% in April 2022, placing the rate of growth above the 12- and six-month average price growth rates of 1.7% and 3.2%, respectively.
Fresh Food inflation accelerated in May to 4.5%, up from 3.4% in April. This is the highest inflation rate since November 2012.
Ambient Food inflation also saw the highest rate of increase since January 2013. Inflation in this category rose 4% in May, up from 3.5% in April.
Mike Watkins, head of retailer and business insight, NielsenIQ, said: “The acceleration in food inflation reflects the fact that retailers can no longer absorb the full extent of increased supply chain costs now hitting the industry. Promotions remain close to an all-time low and price cuts rather than volume-based offers such as multibuy are now the best way for retailers to help their shoppers manage their household budgets.”
Temporary respite
Helen Dickinson OBE, chief executive of the BRC, said: “Retail prices edged up further as commodity, energy and transport costs continued to climb. Fresh food inflation hit its highest rate in a decade, with items like poultry and margarine seeing some of the largest increases due to soaring costs of animal feed and near-record global food prices.
“Retailers have been working hard to protect their customers from these rising costs, particularly at a time when households are being impacted by a huge rise in household energy bills.”
Dickinson said that it is “likely to get worse before it gets better for consumers”, with prices continuing to rise and a further jump in energy costs predicted for October.
She explained: “With little sign that the cost burden on retailers will ease any time soon, they will be left with little room for manoeuvre, especially those whose supply chains are affected by lockdowns in China and the war in Ukraine. While many people will welcome the government’s latest announcement of support, uncertainty in the future of energy prices means they may only provide temporary respite.”
