Food price inflation "hits 9.5%"

The BRC-Nielsen Shop Price Index stated that fresh food prices jumped by 10.8% compared with July 2007, while year-on-year ambient food inflation hit 7.4%.

According to the organisation, increasing pressure is being exerted upon the grocery sector in the UK by growing operating costs in response to transport and energy price changes.

Yet consumers are being slightly protected by global food inflation, the Producer Price Index figure of 11.8% suggests, the BRC added.

Director general Stephen Robertson said that customers are not having the full level of inflation passed on to them.

He stated: "Overall food prices are rising but retailers are keeping increases well below the extra supply and operating costs they face."

Shoppers are beginning to spend less on groceries as they find that other bills such as fuel rises, stated senior manager of retailer services at Nielsen Mike Watkins following research by the firm.

Overall annual shop price inflation stood at 3.2% for the month of July, the study found. In June this figure was 2.5%.