Food inflation hits records as cost of living crisis deepens for millions of households – London Business News
New figures warn that food inflation has hit a record high and food prices rose to 13.3% in December, down from 12.4% in November, which marked a “challenging Christmas” for many households.
Helen Dickinson, Chief Executive of the British Retail Consortium (BRC), said: “It has been a challenging Christmas for many UK households.
“Not only did the cold spell force people to spend more on their energy bills, but the prices of many essential foods also rose as the aftermath of the war in Ukraine kept animal feed, fertilizer and energy costs high.”
Dickinson added: “Price increases on non-food items eased as some retailers took advantage of rebates to shed excess inventory built up during supply chain disruptions, meaning some customers were able to bag cheap gifts.
“The combined impact was that overall price increases plateaued, with the decline in non-food inflation offsetting higher food prices.”
Mike Watkins, NielsenIQ’s Head of Retailer and Business Insight, said: “Consumer demand is likely to be weak in the first quarter due to the impact of energy price hikes and for many beginning holiday spending bills arriving.
“So the rise in food inflation will put further pressure on household budgets and consumer attitudes towards personal finances are unlikely to improve any time soon.
“With shoppers having less money to spend in discretionary retail after paying for their essential groceries, there will be little to spur demand in non-food channels.”