Essential food prices increasing at slower pace than inflation

While headline inflation has increased to seven per cent and food inflation to 5.9 per cent, prices for essential foods and other products are increasing at a slower pace, according to the British Retail Consortium (BRC).

The BRC-NielsenIQ Shop Price Index, which includes a basket of 250 essential food items and 250 basic non-food items, showed essential food prices rising 3.3 per cent last month.

“Households around the UK will be feeling the pinch as the cost of living continues to rise," said Helen Dickinson, chief executive, BRC. "Retailers are trying to help consumers by expanding their value ranges and doing all they can to keep the price of essentials down.

“This can be seen in the BRC’s Shop Price Index, which tracks the price of basic goods, which showed a slower rise in the price of essential foods and other products than the inflation levels report by the ONS.”

She added that consumer confidence has “fallen significantly” in recent months as concerns about personal finances mount.

“Households face a plethora of rising costs, with higher inflation to come as the increase in the energy price cap pushes up April’s figures,” explained Dickinson. “Retailers are not exempt from these pressures, as the costs of transport, energy, raw materials and staff wages all continue to rise.”

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