According to the data, fresh food was more than 10% more expensive than it was in August of last year, while essentials such as milk and margarine increased in price.
In August, food prices increased at the quickest rate since 2008, rising 9.3% after a 7.0% increase the previous month.
According to the British Retail Consortium (BRC) and NielsenIQ index, the price of animal feed, fertilizer, wheat, and vegetable oils increased due to the fighting in Ukraine.
In August, fresh food prices were 10.5% more than they were the previous year, up from the 8% annual increase recorded in July, with milk and margarine experiencing the greatest price increases.
The annual inflation rate for retail prices jumped to 5.1% in August, up from 4.4% in July, and is now the highest since the BRC index began in 2005.
According to the Office of National Statistics, the 12-month rate of inflation reached 10.1% in July, up from 9.4% in June, primarily due to the rise in food costs (ONS).
Some analysts fear it could approach 18% next year when additional massive energy price increases are anticipated to take effect.
Helen Dickinson, the chief executive officer of the British Retail Consortium, stated that the outlook was “gloomy for both consumers and retailers,” but that businesses would support individuals through “discounts to vulnerable groups, expanding value ranges, fixing prices of essentials, and increasing staff pay.”
However, she stated that “they can only bear so much” due to the escalating expenditures.
Ms. Dickinson continued, “The incoming prime minister will have the opportunity to alleviate some of the expense load on retailers, such as the anticipated hike in business rates so that merchants can better serve their customers.
Millions of public sector employees voted for what might be the largest wave of strike action since the 1970s after data earlier this month revealed that workers had experienced a historic real-term wage fall.
NielsenIQ’s director of retailer and business insight, Mike Watkins, stated: “Recent months have seen a decline in supermarket volume sales, which is indicative of buyers’ growing reluctance to spend lavishly on food as inflation continues to rise.
“We may anticipate this level of food inflation to persist for at least the next six months, but we hope that some of the input cost pressures in the supply chain will eventually begin to abate.
“However, with additional declines in disposable incomes expected this autumn as energy prices soar again, retail spending will be under pressure in the crucial fourth quarter.”
