The latest British Retail Consortium (BRC)-NielsenIQ Shop Price Index suggests that price rises have yet to reach their peak despite hitting record highs in January.
The overall annual inflation figure accelerated to 8% last month, up from 7.3% in December, as discounting slowed and retailers continued to face high input costs.
Prices in the food sector rose 13.8% in January, compared with 13.3% the month before.
Ambient food inflation increased from 11% to 11.3%, while fresh food prices increased 15.7%, accelerating from 15% previously.
Helen Dickinson, BRC’s Chief Executive, said ambient food inflation was pushed up by wholesale and bulk prices, particularly for sugar and alcohol. Meanwhile, fresh food prices remained high due to increased food production costs as well as elevated wholesale fruit and vegetable prices.
In non-food, shop price inflation rose from 4.4% to 5.1%, with high street chains facing a tough start to the year as consumers rein in their spending after the excesses of Christmas.
“With global food costs coming down from their 2022 high and the cost of oil falling, we expect to see some inflationary pressures easing,” said Dickinson.
“However, as retailers still face ongoing headwinds from rising energy bills and labour shortages, prices are yet to peak and will likely remain high in the near term as a result.”
NAM Implications:
- i.e. it ain’t over yet…
- Ask anyone that frequents grocery shops!
- Budget for 16-17%, perceives as 30% minimum…
- …or 23/24, and then some.
- Causing worried consumers to withdraw from the branded market…
