The report says: “There are clear signs that the cost pressures from rising transport costs, higher energy and commodity prices and ongoing labour shortages are starting to filter through to consumer prices.”
The BRC adds that a survey of retailers showed that many expected prices would rise by the end of the year, which means Christmas will be “a little more expensive”.
The report added a massive effort from retailers to put food on shelves was proving challenging.
It said: “They continue to be dogged by labour shortages throughout the supply chains – from farms to distribution, and particularly for HGV drivers.
“Retailers are prioritising Christmas essentials and many have laid out their festive