Food inflation up and going higher, warns BRC

The BRC-NielsenIQ index for the start of December found that shop price annual inflation went up to 0.8% from 0.3% in November.

Food inflation went up to 2.4%  from 1.1% in November, the highest inflation rate since March 2019.

When the food inflation was broken down, fresh food prices increased fastest, up to 3% in December from 1.2% in November.

Ambient food went up to 1.7% annual growth in December from 0.9% in November.

Helen Dickinson, chief executive of the BRC, said: “Not only did prices rise, but did so at a faster rate, especially in food.

“Food prices were falling earlier on in 2021, but the acute labour shortages across supply chains, amongst other factors, led to the year ending with a notable increase; for example, fresh food saw the largest rate of inflation in almost a decade.

“Year-on-year non-food products were deflationary, but prices rose across the board on the previous month.

“The trajectory for consumer prices is very clear: they will continue to rise, and at a faster rate.

“Retailers can no longer absorb all the cost pressures arising from more expensive transportation, labour shortages, and rising commodity and global food prices.

“Consumers will already be harder pressed this year, with rising energy bills, the looming hike in national insurance, and more expensive mortgages.

“Government should relieve some of these costs by looking for long-term solutions for resolvable issues such as labour shortages.”