This was against growth of 0.9% in July, and above the three month average of 1.2%.

Food inflation increased to 2.8% year-on-year in August, against growth of 2.2% in July. This is above the three month average of 2.5%.

Fresh food inflation decreased 3% on the year in August against growth of 3.1% in July, in line with the three month average of 3%. Ambient food inflation increased 2.5% year-on-year in the same month, against growth of 1.1% in July and above the three month average of 1.8%.

Helen Dickinson, chief executive of the BRC, stated: “Shop price inflation rose to its highest level in over two years, albeit well below the headline Consumer Price Index. The impact of higher energy, input and commodity costs is beginning to filter through into prices, particularly for ambient foods which are typically imported and processed.

“The months ahead look challenging for households, with rising bills putting further pressure on budgets. Retailers are facing persistently high operating costs, limiting their ability to absorb further increases without impacting investment, jobs and prices. If the Government is serious about supporting growth while keeping the cost of living in check, it must address the cost of doing business, including by tackling the growing burden of business rates, packaging and employment taxes.”

“Every step in the supply chain, whether it is the farm, the factory, or the packaging line, costs more than it did a year ago.”

Rob Sinclair, CEO at Point74, which creates software for food manufacturers, commented: “Food businesses have been absorbing higher costs and there’s only so long any business can do that before the bill lands on the shopper.

“Every step in the supply chain, whether it is the farm, the factory, or the packaging line, costs more than it did a year ago, and too often that goes straight onto the price tag.”