Shop prices rise to their highest level ever as inflation bites

// UK shop prices reach their highest level ever at 4.4% in July, up from 3.1% in June

// British Retail Consortium’s Helen Dickinson admits households and firms “must prepare for a difficult period as inflationary pressures hit home.”

UK shop prices rose to their highest level ever at 4.4% in July, up from 3.1% the month before – their highest rate of inflation in 17 years.

According to the British Retail Consortium, this was the highest rate of shop price inflation since the index first began in 2005, as heightened cost pressures continued to filter through to customers.

Food inflation rose 7% during the month, with butter and cooking fats among those to mark the biggest increases amid the war in Ukraine and rising production costs.

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British Retail Consortium chief executive Helen Dickinson said: “Rising production costs – from the price of animal feed and fertiliser to availability of produce, exacerbated by the war in Ukraine – coupled with exorbitant land transport costs, led food prices to rocket to 7%.”

“Some of the biggest rises were seen in dairy products, including lard, cooking fats and butter. Meanwhile, non-food prices were hit by rising shipping prices, production costs and continued disruption in China.”

She added: “As inflation reaches new heights, retailers are doing all they can to absorb as much of these rising costs as possible and to look for efficiencies in their businesses and supply chain.

“With households enduring a cost-of-living crunch, retailers are expanding their value ranges to offer the widest variety of goods to those most in need, providing discounts to vulnerable groups, and raising staff pay. Nevertheless, households and businesses must prepare for a difficult period as inflationary pressures hit home.”

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