Store prices accelerated in May at the fastest pace in more than a decade, according to new figures that reveal pressure on retailers to pass on the cost of rising energy bills and rising energy prices. imports.
Amid warnings that consumers are facing more pain in the summer due to online price rises and main streets, the latest price index from British Retail Consortium and NielsenIQ stores revealed price inflation retail of 2.8% in May, the highest figure since July 2011.
The BRC said a rise in food prices, which offset discounts and promotions on clothing and household items, explained the rise from 2.7% in April.
Food inflation rose to 4.3% in May from 3.5% in April, peaking in April 2012.
Fresh food prices were hardest hit by rising costs, and farmers said they were struggling to cope with rising labor costs since Brexit and rising labor prices. fertilizers since the Russian invasion of Ukraine.
The cost of fresh food rose 4.5%, while ambient food, such as cabinet commodities, rose 4% during the month.
“Retail prices rose further as raw material, energy and transportation costs continued to rise,” said BRC chief Helen Dickinson.
“It’s likely to get worse before it gets better for consumers with prices continuing to rise and a further jump in energy costs in October.”
Food prices have often fallen in previous years while keeping the measure of inflation in the general consumer price index (CPI) under control.
However, the National Bureau of Statistics (ONS) said the rising cost of food played a major role in the CPI, which reached a 40-year high of 9% in April.
Dickinson added: “Fresh food inflation reached its highest rate in a decade, with items such as poultry and margarine experiencing some of the largest increases due to rising food costs. animal feed and world food prices almost record.
Mike Watson, head of business details and expertise at NielsenIQ, said: “The acceleration in food inflation reflects the fact that retailers can no longer absorb the full scope of rising supply chain costs that it now affects the industry “.
Earlier this week, the ONS said that a study on supermarket prices showed that pasta prices rose by 50% a year until April 2022, and the cost of bread and minced meat also increased substantially.
Meanwhile, new data showed that non-food prices experienced a slowdown in inflation to 2% in May from 2.2% in April.