Food inflation in the United Kingdom reached 4.2% this month. That’s a higher rate than any of the past 18 months, according to the British Retail Consortium’s (BRC) monthly shop price monitor. This bump comes on the heels of a 4% inflation rate reported in July. It brings attention to the welcome plight that consumers find themselves in as staples like meat and poultry continue to get significantly more expensive.
Helen Dickinson, the chief executive of the BRC, pointed to soaring prices of basic items. Food staples like butter, eggs, and bread have experienced especially sharp hikes. These increases are the result of high demand, tightening supply and escalating labor costs all coming together. The BRC’s report reveals that in the five years to July food inflation has increased by an average of 36.6%. This concerning trend is a reminder of the ongoing economic pain so many households are experiencing due to rising living expenses.
Food inflation is now higher than the overall inflation rate and higher than all inflation recorded since March of 2022. At that time, it was calculated at 3.7%. Specifically, the soaring prices of chocolate, butter and eggs have been instrumental in driving this most recent hike. Global cocoa prices are sky-high, thanks to bad harvests, adding more upward pressure on chocolate prices.
Mike Watkins, head of retailer and business insight at NIQ, noted just how high food inflation has risen lately. He explained that this increase is a combination of multiple interconnected factors affecting supply chains and consumer prices.
“As shoppers return from their summer holidays, many may need to reassess household budgets in response to rising household bills,” – Mike Watkins.
Though these issues are daunting, some good news awaits parents as the new school year kicks off. Clothing, books, stationery and computing prices have all fallen, giving some respite from price rises in what has been a largely inflationary economy.