UK: The shop price inflation rate reached 4.4% in July from 3.1% in June. This is the highest rate of inflation since the commencement of the British Retail Consortium index in 2005.
The food inflation rate rose to 7%, indicating a 1.5% rise from June when it was recorded at 5.6%. The rise can be attributed to the inflation of 8% in fresh food prices. At the same time, non-food inflation rose up to 3% from 1.9 % in the month of June.
The chief executive of the British Retail Consortium Helen Dickinson, stated that increasing costs of production – 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 to food prices to upsurge by 7%.
TheDairy Products exhibited the highest rate of inflation, including goods like lard, cooking fats and butter. Meanwhile, the rise in the shipping costs, production costs and disruption in China have worse hit non-food inflationary rates.
The households are obviously worried as the budgets seem to be getting disturbed largely across the country. Moreover, no signs of any relaxation are visible, and the chief executive of the British Retail Consortium Helen Dickinson has warned the households and retail outlets to prepare for the worse in the forthcoming times.
However, the retailers are trying their best to offer a wider range of products, providing discounted rates for the vulnerable groups and giving an increment in wages for their staff members so as to make things easier for them in these hard times.
Mike Watkins, head of the retailer at NielsenIQ, stated that Consumer’s household budgets are coming under increasing strain and shelf price increases in both food and non-food have accelerated in recent weeks as more cost price increases come through the supply chains.
The grocery industry has been the worst hit by inflation and retailers are trying to shield customers from the full impact of inflation.