BRC: Food Inflation Jumps In May

Responding to the latest CPI inflation figures, which show headline inflation remaining at 3.4% and food inflation rising to 4.4%, Kris Hamer, Director of Insight at the British Retail Consortium, said:

“Headline inflation held at 3.4% as higher bills and new business costs introduced in April continued to filter through into the economy. Worryingly for consumers, the price of the weekly shop rose once again as food inflation continued its upward trajectory, reaching its highest level since February last year. However, there were some bright spots. Deflation persisted in the clothing and footwear category and within the food category breakfast items such as eggs, bread and cereals fell in price on the month, offering some relief.

“Since October, retailers have warned that the costs from the Chancellor’s Budget could not be fully absorbed and would inevitably lead to higher prices for shoppers. Food inflation is now above 4% and looks set to increase further later in the year. The government must now take action to relieve cost pressures retailers are facing. Ensuring no shop pays more under business rates reform would be a meaningful step forward, offering much needed relief to an industry that continues to see prices, job losses and store closures all rising.”

Source : BRC

Image : sergeyryzhov / iStock / 517010420

For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY weekly newsletter.