The conflict in Ukraine continues to drive up the cost of animal feed, fertilizer, and vegetable oil, hitting margarine in particular. However, the summer’s heat has led the prices of various fruits and vegetables to decrease.
Figures indicate that shoppers are paying a record 10.6% more for food than they did a year ago.
In September, shop price inflation increased to 5.7%, up from 5.1% in August, setting a new record since the British Retail Consortium-Nielson IQ index was established in 2005.
The crisis in Ukraine, which continues to increase the cost of animal feed, fertilizer, and vegetable oil, is having a significant impact on margarine and other food goods.
Fresh food costs a record 12.1% more than it did a year ago, up from 10.5% in August, the highest rate ever recorded for the category.
The inflation rate for pantry essentials, such as pasta and canned tomatoes, reached an all-time high of 8.6%, up from 7.8% the previous month, the category’s highest rate of increase.
Even though the summer drought reduced some harvests, other food benefited from the longer sunshine, resulting in a decline in the price of strawberries, blueberries, and tomatoes.
Non-food inflation climbed from 2.9% in August to 3.3% in September, primarily as a result of higher transport costs for larger hardware, DIY, and gardening products.
Helen Dickinson, chief executive officer of the British Retail Consortium, stated, “Retailers are under enormous cost pressures due to the weak pound, rising energy costs and global commodity prices, high transport costs, a tight labor market, and the cumulative load of government-imposed expenditures.”
Additionally, business rates will increase by 10 percent in April of next year, costing retailers an additional £800 million in exorbitant tax increases.
“The government must immediately freeze the business rates multiplier so that merchants can do more to assist families.”
Mike Watkins, head of retailer and business insight at NielsenIQ, stated, “With food and home energy prices continuing to climb, it’s little surprise that 76% of consumers anticipate being moderately or badly impacted by the cost-of-living crisis over the next three months, up from 55% in the summer.
“Therefore, households will seek savings to assist them to manage their finances this fall, and we expect consumers to become more judicious with their discretionary spending, putting pressure on the retail industry.”
