Meals inflation rises to a “file” 10.6% in September

Meals inflation rose to 10.6% in September 2022 from 9.3% in August, above the three-month common price of 9.1% and marking the very best price of inflation within the meals class on file, in keeping with British Retail Consortium (BRC) Nielsen IQ Index.

Recent meals inflation additionally rose on a month-to-month foundation from 10.5% to 12.1%, above the three-month common of 10.4%. It’s also reported to be the very best price of inflation within the recent meals class on file.

As well as, meals inflation accelerated to eight.6% in September from 7.8% in August. This was additionally above the quarterly common price of seven.4% and marked the quickest price of progress within the environmental meals class on file.

General, annual retailer worth inflation accelerated to five.7%, above the three-month common price of 5.1%. This marks one other file for retailer worth inflation for the reason that index started in 2005.

The BRC stated the warfare in Ukraine had continued to push up the costs of animal feed, fertilizer and vegetable oil, inflicting recent meals inflation to rise “considerably” over the previous few months, notably for merchandise equivalent to margarine.

Whereas the summer season drought decreased some crops, different produce reportedly benefited from prolonged sunshine, which helped decrease costs for fruits equivalent to strawberries, blueberries and tomatoes.

Non-food inflation additionally rose to three.3%, largely pushed by DIY, horticulture and {hardware} merchandise, which as heavier objects had been hit tougher by rising transport prices.

Helen Dickinson OBE, Chief Govt of the BRC, stated: “Retailers are combating big value pressures from the weak pound, rising vitality payments and world commodity costs, excessive transport prices, a decent labor market and the cumulative burden of from authorities spending.

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“With enterprise charges set to leap by 10% subsequent April, hard-pressed retailers face an additional £800m of hefty tax rises. The Authorities ought to urgently freeze the enterprise price multiplier to present retailers extra alternatives to do extra to assist households.

Mike Watkins, head of retail and enterprise perception at NielsenIQ, added: “As family meals and vitality costs proceed to rise, it’s no shock that NielsenIQ information reveals that 76% of shoppers say that anticipate to be reasonably or severely affected by the price of dwelling disaster within the subsequent 3 months in comparison with 57% in the summertime.

“So households shall be in search of financial savings to assist handle their private funds this autumn and we anticipate buyers to grow to be extra cautious about discretionary spending, including to the strain on the retail sector.”

Meals inflation rises to a ‘file’ 10.6% in September