Food inflation increased to record levels last month, jumping from 16.7 per cent in January to 18 per cent.

The latest ONS Consumer Price Index figures show that food has the second highest level of inflation across all categories, behind only housing, water, electric, and gas which was recorded at 26.6 per cent in February.

“Food and non-alcoholic beverages prices are running at record levels – up 18.2 per cent year on year – the highest observed for over 45 years,” said Kevin Bright, partner at McKinsey. “This is eating into a significant proportion of disposable income.”

Bright said that a large proportion of price rises are being driven by products that contain grains, eggs, oil, and certain proteins, in part because retailers are rationing items, which can keep prices higher for longer.

Helen Dickinson, chief executive of the British Retail Consortium said that the high price of animal feed and fertiliser has driven up the price of many staples, while the weaker pound made importing products, including vegetables from Continental Europe, more expensive.

“While inflation is expected subside later this year, prices are likely to remain elevated as the higher costs throughout supply chains become baked in," added the chief executive.

Clothing and footwear also saw inflation increase from 6.2 per cent to 8.1 per cent during the same period.

Furniture and household equipment saw prices decrease marginally – with inflation down from 9.2 per cent to 8.7 per cent.

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