The climb in prices charged by shops and supermarkets in Britain accelerated again in the 12 months to September, hitting its highest since records began in 2005, the British Retail Consortium said today (28). Staple products such as margarine, pasta and tinned tomatoes hit new highs in September.
Prices rose by 5.7 percent, speeding up from 5.1 percent in the 12 months to August, led by an unprecedented 10.6 percent jump in food prices as the war in Ukraine inflated the costs of animal feed, fertiliser and vegetable oil, the BRC said.
Fresh food products cost a record 12.1 percent more than last year, up from 10.5 percent in August, the highest rate for the category on record, while inflation for some staples such as pasta and tinned tomatoes, has reached a record 8.6 percent, up from 7.8 percent a month previously,
Inflation in food prices this month has climbed past the 9.3 percent that was reported in August. The rise is fuelled by the war in Ukraine, which is pushing up the price of animal feed, fertiliser and vegetable oil.
However, fruits such as strawberries and blueberries saw a fall in prices as the benefited from the long stretch of drought conditions over the summer leading to a good harvest.
“Retailers are battling huge cost pressures from the weak pound, rising energy bills and global commodity prices, high transport costs, a tight labour market and the cumulative burden of government-imposed costs,” said Helen Dickinson, the chief executive of the BRC. “And, with business rates set to jump by 10% next April, squeezed retailers face an additional £800m in unaffordable tax rises.”
Dickinson called on the government to freeze business rate rises so retailers can limit price rises for shoppers.
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