Summary
- Food inflation rose to 4 per cent in July, driven by surging meat and tea prices.
- Ambient food prices spiked 5.1 per cent, while fresh food inflation slightly eased
- BRC warns of more price pain ahead if the government hikes taxes again, urging relief in the next Budget.
Food inflation climbed for the sixth straight month in July, with meat and tea prices seeing the sharpest hikes, putting pressure on household budgets, shows industry data released today (July 29).
According to the latest snapshot from the British Retail Consortium (BRC) food prices rose by 4 per cent in July from a year earlier, up from 3.7 per cent in June and above the three-month average of 3.5 per cent.
Fresh food inflation decreased to 3.2 per cent year on year in July, against growth of 3.2 per cent in June. This is above the 3-month average of 2.9 per cent.
Ambient food inflation increased to 5.1 per cent year on year in July, against growth of 4.3 per cent in June. This is above the 3-month average of 4.2 per cent.
Overall, shop price inflation increased to 0.7 per cent year on year in July, against growth of 0.4 per cent in June.
Commenting on the figures, Helen Dickinson, Chief Executive of the BRC, said, “Families will have seen their food bills increase as food price inflation rose for the sixth consecutive month.
"Staples such as meat and tea were hit the hardest as wholesale prices for both categories have been hit by tighter global supplies. This has helped push up overall shop prices.
"There were a few bright spots, with discounts in fashion and furniture offering consumers a chance to refresh their wardrobe and homes.
“If the government wants to support struggling families, it must think carefully about the next Budget. Retailers are doing everything possible to protect their customers from the worst of the inflationary pressures, but the £7bn cost to retail of last year’s Budget forced most retailers to raise prices.
"Further tax rises will ultimately hurt households, locking in inflation and forcing people to pay higher prices to put food on the table.”
Mike Watkins, Head of Retailer and Business Insight, NIQ, said, “Consumers’ household budgets are coming under pressure with the food retailers now seeing price increases above CPI.
"However, price competition helped by promotional activity will still mean that shoppers can save money by shopping around. With inflation on the up, high street retailers will also be concerned about customer retention over the summer holiday season if they are to maintain sales momentum."