Winter ‘looking bleak’ as food inflation hits record level of 12.4%

Food inflation has surged to 12.4% – a new record amid predictions of dampened Christmas cheer and an “increasingly bleak” winter.

Shop prices are now 7.4% higher than last November, up from 6.6% in October, to set another record since the British Retail Consortium records began in 2005.

But food inflation accelerated further to 12.4% from October’s 11.6% – also the highest rate since 2005 – as rocketing energy, animal feed and transport costs forced up prices.

The Brc-nielsen IQ Shop Price Index shows fresh food inflation rose even higher to 14.3%, up from 13.3% last month.

The rise was driven by the cost of meat, eggs and dairy.

Coffee prices “shot up” as high input costs filtered through to prices, while Christmas gifting is also set to become more expensive than in previous years with sports and recreation equipment seeing particularly high increases, the BRC said.

BRC chief Helen Dickinson said: “Winter looks increasingly bleak as pressures on prices continue unabated.

“While there are signs that cost pressures and price rises might start to ease in 2023, Christmas cheer will be dampened this year as households cut back on seasonal spending in order to prioritise the essentials.”