According to the British Retail Consortium (BRC), overall shop prices were up as food inflation was on the rise over the 1st – 7th July period.
Shop price inflation increased to 0.7% year on year in July, against growth of 0.4% in June. This is above the three month average of 0.3%.
Food inflation rose to 4% on the year in July, against growth of 3.7% in June, which was above the three month average of 3.5%.
Fresh food inflation fell to 3.2% on the year in July, against growth of 3.2% in June. This was up on three month average of 2.9%, while ambient food inflation increased to 5.1% year-on-year in July, up on June’s 4.3% and above the three month average of 4.2%.
Helen Dickinson, chief executive of the BRC, said: “Families will have seen their food bills increase as food price inflation rose for the sixth consecutive month. Staples such as meat and tea were hit the hardest as wholesale prices for both categories have been hit by tighter global supplies. This has helped push up overall shop prices.”
“Further tax rises will ultimately hurt households, locking in inflation and forcing people to pay higher prices to put food on the table.”
Dickinson continued: “If the Government wants to support struggling families, it must think carefully about the next Budget. Retailers are doing everything possible to protect their customers from the worst of the inflationary pressures, but the £7 billion cost to retail of last year’s Budget forced most retailers to raise prices. Further tax rises will ultimately hurt households, locking in inflation and forcing people to pay higher prices to put food on the table.”
Mike Watkins, head of retailer and business insight, NIQ, said: “Consumers’ household budgets are coming under pressure with the food retailers now seeing price increases above CPI. However, price competition helped by promotional activity will still mean that shoppers can save money by shopping around.
“With inflation on the up, high street retailers will also be concerned about customer retention over the summer holiday season if they are to maintain sales momentum.”
