Food inflation accelerated to 13.8% in January, the highest rate on record, according to the latest BRC-NielsenIQ Shop Price Index.
The figures show fresh food inflation accelerated in January to 15.7% – the highest inflation rate in the fresh food category on record.
In addition, ambient food inflation accelerated to 11.3% in January – also the fastest rate of increase in the ambient food category on record.
Helen Dickinson, Chief Executive of the British Retail Consortium, said: “Ambient food inflation accelerated the most as wholesale and bulk prices grew, particularly for sugar and alcohol. Fresh food prices also remained high due to increased food production costs as well as elevated wholesale fruit and vegetable prices.”
She added: “With global food costs coming down from their 2022 high and the cost of oil falling, we expect to see some inflationary pressures easing. However, as retailers still face ongoing headwinds from rising energy bills and labour shortages, prices are yet to peak and will likely remain high in the near term as a result.”
Mike Watkins, Head of Retailer and Business Insight, NielsenIQ, said: “Consumer demand is likely to be weak in the first quarter due to the impact of energy price increases and for many, Christmas spending bills starting to arrive. So the increase in food inflation is going to put further pressure on household budgets and it’s unlikely that there will be any improvement in the consumer mindset around personal finances in the near term.”
