Margarine prices jump – but some fruit and veg is cheaper

UK

Shoppers are paying a record 10.6% more for food than they were a year ago, figures show.

Overall, shop prices rose by 5.7% in the year to September, up from an inflation rate of 5.1% in August, in another record since the British Retail Consortium-Nielson IQ index began in 2005.

Food price inflation rose past last month’s 9.3% to 10.6%, driven by the war in Ukraine, which is continuing to push up the price of animal feed, fertiliser and vegetable oil and is particularly affecting products such as margarine.

Fresh food cost a record 12.1% more than last year, up from 10.5% in the year to August, the highest rate for the category on record.

Inflation for store cupboard staples, such as pasta and tinned tomatoes, reached 8.6%, up from 7.8% a month previously, the fastest rate of increase.

Although the summer’s drought reduced some harvests, the sunshine helped to improve yields and push down the price of strawberries, blueberries and tomatoes.

Non-food inflation rose from 2.9% in August to 3.3%, largely driven by rising transport costs adding to the price of hardware, DIY and gardening products.

More on Cost Of Living

Read more:
See which prices have gone up or down
Millions of people already behind with their household bills, new research suggests

Helen Dickinson, chief executive of the British Retail Consortium, said: “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.

“And, with business rates set to jump by 10% next April, squeezed retailers face an additional £800m in unaffordable tax rises.

“Government must urgently freeze the business rates multiplier to give retailers more scope to do more to help households.”

Mike Watkins, head of retailer and business insight at NielsenIQ, said: “With food and household energy prices continuing to rise, it’s no surprise that NielsenIQ data shows that 76% of consumers are saying they expect to be moderately or severely affected by the cost-of-living crisis over the next three months, up from 57% in the summer.

“So households will be looking for savings to help manage their personal finances this autumn and we expect shoppers to become more cautious about discretionary spend, adding to pressure in the retail sector.”

Articles You May Like

Ask the Union Leaders: Business owners set to suffer as Royal Mail ‘will destroy the service’
Army standing by to fill roles during NHS strike – as more workers walk off their jobs
Kyiv mayor’s blunt message to residents after heat and water supplies knocked out for days
Tesla Semi looks incredible as an electric motorhome
Neil deGrasse Tyson explains what NASA’s discovery means for life beyond Earth