Shop prices continue to accelerate amid soaring costs

Shop price annual inflation accelerated to 2.7 per cent in April, up from 2.1 per cent in March, the highest rate of inflation since September 2011, according to the BRC-NielsenIQ Shop Price Index.

Food inflation rose to 3.5 per cent, up from 3.3 per cent in March, the highest inflation rate since March 2013.

Fresh food inflation decelerated in April to 3.4 per cent, down from 3.5 per cent in March, but the figure represented the second highest inflation rate since March 2013.

However, ambient food inflation accelerated to 3.5 per cent in April, up from 3.0 per cent in the previous month, the highest rate of increase since January 2013.

Non-food inflation accelerated to 2.2 per cent in April, up from 1.5 per cent in March, which marks the highest rate of inflation since the data series began in 2006.

“The impact of rising energy prices and the conflict in Ukraine continued to feed through into April’s retail prices,” commented Helen Dickinson, chief executive of the British Retail Consortium.

“Non-food products, particularly furniture, electricals and books, have seen the highest rate of inflation since records began. This has been exacerbated by disruption at the world’s largest seaport, following Shanghai’s recent lockdown. Food prices continued to rise, though fresh food inflation slowed as fierce competition between supermarkets resisted price hikes on many everyday essentials.”

Dickinson warned further price rise as global food prices are at record highs, seeing a 13 per cent rise on last month alone, and even higher for cooking oils and cereals.

“As these costs filter through the supply chain, they will place further upward pressure on UK food prices in the coming months. Retailers will continue to do all they can to keep prices down and deliver value for their customers by limiting price rises and expanding their value ranges, but this will put pressure on them to find cost-savings elsewhere. Unfortunately, customers should brace themselves for further price rises and a bumpy road ahead,” she said.