Increasing cost pressures across the supply chain have led to a record high for in-store prices in the UK in August! Annual inflation to UK in-store prices (shop price) rose to 5.1 per cent in August, up from 4.4 per cent, according to the latest brc-nielsen iq store price index. This marks a new record for in-store price inflation since the index began its calculations in 2005.
Food inflation accelerated strongly in August to 9.3% in August, up from 7.0% in July and above the three-month average inflation rate of 7.2%, the highest since August 2008. Non-food inflation fell to 2.9 per cent in August from 3.0 per cent in July, but was still slightly above the three-month average of 2.6 per cent. Non-food inflation is not the latest record, but is still near its record high.
Helen Dickinson (helen dickinson), chief executive of the British Retailers Association (british retail consortium), said: " Animal feed, fertilizer, wheat and vegetable oil prices have risen due to the Russo-Ukraine war, further driving up food prices. Inflation for fresh food, in particular, has soared to its highest level since 2008, with products such as milk, margarine and potato chips rising the most.
"Rising in-store prices are triggering wider inflation in the UK, with some analysts predicting that inflation could exceed 18 per cent by 2023. The situation is tough for both consumers and retailers, but retailers will continue to work to support their customers by offering discounts to vulnerable groups, increasing product value, maintaining the price of daily necessities, and raising employee salaries. However, while retailers make efforts to cope with growing cost pressures, so much they can afford. The new Prime Minister will have the opportunity to ease the cost burden on retailers, such as the upcoming higher business interest rates, to help retailers do more to help their customers."
mike watkins Watkins (mike watkins), head of retailers and business insight at market research firm nielsen iq, said: " Inflation continues to accelerate, shoppers are increasingly cautious about buying groceries, and supermarket sales have continued to decline in recent months. We can expect this level of food inflation to last for at least six months, but we hope that some input-cost pressures in the supply chain will start to ease. However, as energy costs soar again, disposable revenues will fall further this fall, and retail spending will come under pressure in the most important final quarter of the year."
