UK store value inflation reached its highest fee for no less than 18 years in Might, regardless of the tempo of meals value progress marginally easing, in keeping with new sector knowledge.
The price of store objects rose at an annual fee of 9 per cent final month, up from 8.8 per cent in April, marking the quickest enhance for the reason that British Retail Consortium (BRC) data started in 2005, the commerce physique stated on Tuesday.
Nonetheless, meals inflation decelerated barely to fifteen.4 per cent in Might, falling from an all-time file excessive of 15.7 per cent the earlier month.
Shopper value progress has accelerated since Russia’s invasion of Ukraine in February 2022 which resulted in spiralling power and meals costs globally.
Helen Dickinson, BRC chief government, stated that “whereas general store value inflation rose barely . . . households will welcome meals inflation starting to fall”.
She added that the slowdown in meals value rises was largely pushed by decrease power and commodity prices beginning to filter by way of provide chains and scale back inflation on some staples together with butter, milk, fruit and fish.
However the value of chocolate and low rose off the again of the excessive world prices for these commodities. These pushed inflation for ambient meals — objects that may be saved at room temperature — to 13.1 per cent in Might, from 12.9 per cent within the earlier month.
Meals inflation impacts the poorest households hardest as they have a tendency to spend a bigger proportion of their price range on necessities.
Mike Watkins, head of retail and enterprise perception at NielsenIQ, which helps compile the info, stated that to mitigate the rising value of dwelling, consumers have been looking for seasonal promotions and grocery store loyalty scheme provides.
Knowledge revealed final week confirmed that meals gross sales volumes have been down 2.7 per cent from their pre-coronavirus ranges in March as shoppers reduce on purchases in response to larger costs.
The BRC additionally reported that non-food inflation rose to five.8 per cent in Might, up from 5.5 per cent within the earlier month, regardless of shops providing heavy reductions on footwear, books and residential leisure.
The BRC knowledge prompt that the worth progress of meals and non-alcoholic drinks remained excessive.
In April, official meals inflation was 19.1 per cent, solely marginally down from a 45-year excessive of 19.2 per cent registered within the earlier month, in keeping with the Workplace for Nationwide Statistics knowledge launched final week.
Total inflation fell lower than anticipated to eight.7 per cent from 10.1 per cent within the earlier month, boosting expectations that the Financial institution of England will increase charges additional to curb inflation.