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Shop prices hit highest rate of inflation in almost 17 years | Personal Finance | Finance

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They shot as much as 4.4 percent in July, up from 3.1 percent in June – the very best rate of inflation because the BRC-NielsenIQ shop price index first began in 2005. Food inflation rocketed to seven percent in July, up from 5.6 percent in June, driven by rising production costs. That is the very best inflation rate since May 2009.

Helen Dickinson OBE, Chief Executive of the British Retail Consortium, said that a few of the biggest rises were seen in dairy products, including lard, cooking fats and butter.

The figures come as UK inflation hit yet one more latest 40-year high last month as food and energy prices continued to soar, escalating the country’s historic cost-of-living crisis.

The speed of Consumer Prices Index inflation rose to an annual rate of 9.4 percent in June – up from 9.1 percent in May, the Office for National Statistics (ONS) said.

It means inflation in Britain stays at the very best level since February 1982 and heaps yet further strain on cash-strapped households and businesses.

Helen said: “July saw the very best rate of shop price inflation since our index began in 2005, as heightened cost pressures continued to filter through to customers.

“Rising production costs – from the value of animal feed and fertiliser to availability of produce, exacerbated by the war in Ukraine – coupled with exorbitant land transport costs, led food prices to rocket to seven percent.”

Non-food prices also accelerated to a few percent in July, up from 1.9 percent in June – this was a record-high, beating the previous record of two.2 percent in April 2022.

Helen blamed these rises on rising shipping prices, production costs and continued disruption in China.

Fresh food inflation soared to eight percent in July, which is well above the 12 and six-month average price growth rate of two.9 percent and 4.8 percent, respectively.

And ambient food inflation rose to five.7 percent in July, up from 4.8 percent in June.

But she said retailers are doing “all they’ll to soak up much of those rising costs as possible” and are on the lookout for efficiencies of their businesses and provide chain.

She added: “With households enduring a cost-of-living crunch, retailers are expanding their value ranges to supply the widest number of goods to those most in need, providing discounts to vulnerable groups, and raising staff pay.

“Nevertheless, households and businesses must prepare for a difficult period as inflationary pressures hit home.”

The persistence of high inflation is a key concern for Britons struggling to manage because the energy bills, food prices and the associated fee of filling a automotive are all rising at concerning rates.

Inflation is predicted to peak barely over 10 percent by the top of the 12 months. And on Tuesday, Unilever’s chief financial officer Graeme Pitkethly said the more severe is yet to come back.

He said: “We expect peak inflation to are available in the second half of the 12 months.”

And Andy Searle, a partner at consultancy Alix Partners, said: “We’re not going to return to the previous low inflation environment – we’re going to be stuck on this environment for a major period of time.”

Mike Watkins, Head of Retailer and Business Insight, NielsenIQ, said: “Consumers’ household budgets are coming under increasing strain and shelf price increases in each food and non-food have accelerated in recent weeks as more cost prices increases come through the provision chains.

“The grocery industry, specifically, is under intense pressure as retailers attempt to shield customers from the total impact of inflation.

“At the identical time, there was a rise in competitive intensity so customer retention over the summer holiday season will likely be key to assist stem any further fall in volumes.”

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