Food inflation reaches highest rate since global financial crisis

UK food inflation rose to 9.3 per cent this month, the highest level since the global financial crisis in 2008.

Figures from the British Retail Consortium (BRC) show that inflation was up by over two per cent compared to July.

The study also reveals that shop price annual inflation increased from 4.4 per cent last month to 5.1 per cent in August – a new record for shop price inflation since the BRC’s price index started in 2005.

Helen Dickinson, chief executive of the retail trade association said that the war in Ukraine, which has led to increased prices for animal feed, fertiliser, wheat, and vegetable oils, has continued to push up food prices.

Products such as milk, margarine, and crisps have seen some of the biggest price hikes so far.

The rise in shop prices plays into wider UK inflation, which some analysts are predicting could top 18 per cent next year, says Dickinson.

“These surging food prices will be concerning for households already grappling with a cost-of-living crisis in other areas,” said Rocio Concha, director of policy and advocacy at consumer organisation Which? “Even before the latest increases, Which? found the cost of hundreds of popular grocery items had soared by more than 20 per cent in two years.

“People are responding in a range of ways, including in the most desperate cases having to miss meals, or resorting to food banks.”

Earlier this month the BRC published figures which showed that while UK retail sales growth increased last month, the upward trend still failed to keep up with rising inflation.

At the time the organisation said that given inflation is running at historically high levels, the small rise in sales masked a much larger drop in volumes.

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