UK food prices hit record level but spring discounts at clothing and furniture shops help ease retail inflation
Food inflation in the UK surged to a record high last month while shop prices eased slightly, according to data from the BRC-NielsenIQ shop price index.
There was continued pressure on consumer finances as food prices soared to 15.7 per cent. Overall, inflation did slow last month due to spring discounts at fashion and furniture stores.
The latest figures showed that shop prices were 8.8 per cent higher last month compared with the same month a year earlier, easing slightly from 8.9 per cent in March. It came as nonfood stores recorded inflation of 5.5 per cent for the month, slipping from 5.9 per cent in March as shops reduced prices in a bid to attract customers.
This fall offset the jump in food inflation to 15.7 per cent from 15 per cent in March.
Fresh food prices increased by a record 17.8 per cent annually for the month, while the price of ambient products, such as tinned goods and other store-cupboard items, increased 12.9 per cent.
“Overall shop price inflation eased slightly in April due to heavy spring discounting in clothing, footwear and furniture,” Helen Dickinson, chief executive of the British Retail Consortium, said. “However, food prices remained elevated given continuing cost pressures throughout the supply chain,” she said.
“The knock-on effect from increased production and packaging costs meant that ready meals became more expensive and coffee prices were also up due to the high cost of coffee beans, as well as key producer nations exporting less. Meanwhile, the price of butter and vegetable oils started to come down as retailers passed on cost savings from further up the supply chain.”
Ms Dickinson added that shoppers “should start to see food prices come down in the coming months” amid reductions in wholesale prices and other costs.
“In recent weeks, more retailers have used loyalty schemes or money off promotions to help stimulate sales,” said Mike Watkins, head of retailer and business insight at NielsenIQ. But “with inflation yet to peak and sales volumes in decline in many channels, it’s difficult to second guess the strength of consumer confidence”.
Shop prices were 8.8% higher in April compared with the same month a year earlier but eased from 8.9% in March