Food prices in the UK last month recorded their highest rate of inflation since November 2013.
Data from the BRC-Nielsen Shop Price Index shows food inflation accelerated to 2.5% in March, up from 1.6% in February. Fresh Food inflation rose to 1.9% from 1.7% the previous month, whilst ambient food inflation jumped to 3.4% from 1.5%.
The British Retail Consortium (BRC) stated that global commodity prices and weather events had pushed food prices up. Global cereal price rises led to higher bread & cereal costs, whilst last year’s bad weather meant that a number of UK crops saw much lower yields, leading to significant price increases now. There was also rises in the cost of alcoholic and non-alcoholic beverages.
Overall, shop price inflation rose to 0.9% in March from 0.7% in February, the highest inflation rate since March 2013.
Non-Food prices were unchanged with falls in the clothing and electrical sectors being offset by increases in DIY, health & beauty, books and furniture prices.
Helen Dickinson, Chief Executive of the BRC, warned there would be no let-up in food price rises if the UK leaves the EU without a trade deal.
She said: “The bigger threat to food inflation remains the risks of a chaotic no deal Brexit, which would lead to higher prices and less choice on the shelves. In order to avoid this scenario, parliamentarians from all parties must find a compromise that can command a majority in the House of Commons.”
Mike Watkins, head of retailer and business insight at Nielsen, said the figures underline the pressures facing the supermarkets, which have seen slower sales since the start of the year as cautious shoppers make cuts to their grocery budgets amid the Brexit uncertainty.
However, he suggested there was some relief for consumers buying non-food items. “For many high street fashion, home and outdoor retailers prices are not increasing, so good news for shoppers as the end of season ranges sell through,” said Watkins.
