Food inflation accelerated to 9.3% in August, up from 7.0% in July, the highest inflation rate since August 2008.
Data from the British Retail Consortium and market research firm NielsenIQ shows fresh food inflation accelerated in August to 10.5%, up from 8.0% in July. Meanwhile, ambient Food inflation also accelerated to 7.8% in August, up from 5.7% in July.
Overall Shop Price annual inflation accelerated to 5.1% in August, up from 4.4% in July, a new record.
Mike Watkins, Head of Retailer and Business Insight, NielsenIQ, said: “Inflation continues to accelerate, and shoppers are already cautious about how much they spend on groceries, with a fall in volume sales at supermarkets in recent months. We can expect this level of food inflation to be with us for at least another six months, but hopefully some of the input cost pressures in the supply chain will eventually start to ease.
“However, with further falls in disposable incomes coming this autumn as energy costs rocket again, retail spend will come under pressure in the all-important final quarter of the year.”
