Store prices have reached their highest inflation rate in nearly 14 years as companies face rising supply chain costs and a reduction in household spending, they show. figures from the British Retail Consortium (BRC).
They were up 3.1% from a year ago in June, up from 2.8% in May, the highest rate of inflation since September 2008, according to the BRC-NielsenIQ store price index.
Food inflation rose to 5.6% in June, from 4.3% in May, driven by fresh food prices 6.2% more than in June last year, the inflation rate highest since May 2009.
The figures follow the National Statistics Office which reports that inflation as measured by the consumer price index rose from 9% in April to 9.1% last month, a level not seen since February 1982, amid record gasoline prices and rising food costs.
BRC Executive Director Helen Dickinson said: “Last month households and businesses were hit by the highest inflation rate since the 1980s, as energy commodity prices , transport and almost record food were leaked through the supply chain.
“Food prices rose sharply, especially fresh foods such as cheese, which have been affected by the spiraling costs of fertilizers and animal feed.”
He said retailers remained “focused on protecting their customers,” adding, “Fierce competition means retailers will continue to absorb as much of these cost pressures as possible and seek efficiency in their businesses.” supermarkets are also expanding their value ranges to offer a wider choice for customers who market down and offer discounts to vulnerable groups.
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“Retailers are working to find more ways to protect their customers from the worst effects of inflation, but if costs continue to rise, the government may need to find ways to help retail companies support their customers.” .
Mike Watkins, head of distributors and business know-how at data company NielsenIQ, said: “While the fast-moving consumer goods industry is more isolated from any decline in consumer spending, retail food is not immune.
“As inflation accelerates due to rising costs of energy, travel and now food, buyers are now more likely to reduce household consumption, buy on a fixed budget, change to cheaper private labels and looking for retailers where prices are the lowest. ”