Food price inflation rises to 7%, says BRC


Annual food price inflation rose to 7% during June, up from the 6% recorded in May, according to the latest figures from the British Retail Consortium (BRC).


Non-food also rose during June, by 0.2%, against the 0.4% decrease seen during the previous month, leaving overall shop price inflation at 2.5%.

The BRC said the increases came in the face of world agricultural prices rising by up to 80%, and praised supermarkets for keeping food prices down.

Director general Stephen Robertson said: “Although their own costs are going up, food retailers are running high-profile price cuts and promotions. They are keeping prices to customers down by cutting costs and increasing sales.”

Mike Watkins, senior manager, retailer services, Nielsen said: “In recent weeks we’ve seen more cost price inflation in fresh and chilled foods as well as in some staple ambient categories and this is adding to the cost of the weekly shopping basket.

“As a result we’re seeing further price cuts by the major supermarkets to stimulate demand at a time when many households are under increased cost pressures from higher fuel and utility bills.”

Increases in fresh food contributed the most to the inflation figure, with prices rising by 8.4% against May’s 6.4%.

Pressure came in particular from beef, veal and pork, as well as oils, margarine and cooking fats. The BRC said this was due to the rising cost of animal feed filtering through.

Ambient food rose by 5.1%, down from 5.4% in May. Pasta, rice, flour and other cereals were the main culprits.

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