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The Markets
by Proactive
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Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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Food & drink

UK food price inflation hits record 10.6% as Ukraine war continues to bite

Fresh products and store cupboard staples – including pasta and tinned tomatoes – reached their highest ever rate for their categories, at 12.1% and 8.6% respectively

Food shoppers were charged a record 10.6% more for food in September than a year ago, according to the British Retail Consortium-Nielson IQ index.

Food inflation advanced past August’s 9.3% rise, largely attributed to the Ukraine war, which is responsible for catapulting prices of margarine, vegetable oil, animal feed and fertiliser.

Fresh food products and store cupboard staples – including pasta and tinned tomatoes – both reached their highest rate for the category on record, at 12.1% and 8.6% respectively.

Overall shop price inflation climbed to 5.7% in September, another high since the index began in 2005.

The summer drought diminished many harvests but other products benefitted hugely from longer periods of sunshine.

Strawberries, blueberries and tomatoes, for example, have all experienced falling prices from the improved crops.

NielsenIQ data outlined that 76% of customers say they anticipate being moderately to severely impacted by the cost-of-living crisis in the remainder of 2022, up significantly from 57% in the summer.

Helen Dickinson, British Retail Consortium chief executive, commented: "Retailers are battling huge cost pressures from the weak pound, rising energy bills and global commodity prices, high transport costs, a tight labour market and the cumulative burden of government-imposed costs.

"Government must urgently freeze the business rates multiplier to give retailers more scope to do more to help households."

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