Store prices grew at the fastest pace in more than a decade during May, driven by the rapid acceleration of food inflation.
The figures come from the latest BRC-NielsenIQ store price index, which analyzes food and non-food baskets and measures price change over time.
He found retail price inflation to be 2.8% in May – the highest since July 2011 – and experts say buyers’ situation “will get worse before it gets better”.
Helen Dickinson, executive director of the British Retail Consortium, said: “Retail prices rose further as raw material, energy and transport costs continued to rise.
“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.”
The 2.8% increase in May came after the 2.7% increase in April, with rising food prices offsetting discounts and promotions offered on clothing and items for at home.
Food inflation rose 4.3% in May from 3.5% in April, the highest level since April 2012.
Fresh food prices rose 4.5%, while ambient foods, such as closet commodities, rose 4% during the month.
“World food prices almost record”
“Fresh food inflation hit its highest rate in a decade, with items such as poultry and margarine experiencing some of the largest increases due to rising food costs,” said Dickinson. animal feed and world food prices almost record.
“Retailers have been working hard to protect their customers from these rising costs, especially at a time when households are being hit by a huge increase in household energy bills.”
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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.
“Promotions remain near an all-time low, and price cuts instead of volume-based offers, such as multiple purchases, are now the best way for retailers to help their buyers manage their budgets. home”.
Private sector growth is expected to flatten
It came days after the National Bureau of Statistics revealed that pasta prices had risen by 50% between April last year and April this year, and the cost of bread and meat bites also cost more.
Meanwhile, the latest CBI growth indicator has warned that private sector activity is expected to be broadly flat for the three months to August, at 1%, marking the lowest growth expectation. of the sector since February last year.
Manufacturing is expected to grow by 23%, but distribution sales are expected to increase by only 3%. Business and professional services activity is expected to contract by 1%, while consumer services activity is expected to fall by 23%.
CBI chief economist Alpesh Paleja said: “The new target support package of the chancellor for low-income households is the right one and will help people facing real difficulties. But to face the confidence of the Hesitant companies will require more action.
“In the midst of a worsening economic outlook, the government needs to work with companies on a genuine plan to increase business investment and regain growth, especially as costs continue to rise.”