Food inflation hits new record high
Prices rose 15.7% in April
Food prices soared 15.7%, the highest on record, in April, to continue pressure on consumer finances, according to the latest BRC-NielsenIQ shop price index.
However, Spring discounting at fashion and furniture stores meant wider retail inflation slowed for the month.
The fresh figures reported shop price inflation of 8.8% in April, against the same month a year earlier, easing slightly from 8.9% in March.
It came as non-food stores recorded inflation of 5.5% for the month, slipping from 5.9% in March as shops reduced prices in a bid to attract customers.
This fall offset the jump in food inflation to 15.7% from 15% in March.
Fresh food prices increased by a record 17.8% year-on-year for the month, while the price of ambient products, such as tinned goods and other store-cupboard items, increased 12.9%.
Coffee and ready meals more expensive
Chief executive of the British Retail Consortium (BRC), Helen Dickinson, said: "Overall shop price inflation eased slightly in April due to heavy spring discounting in clothing, footwear, and furniture.
"However, food prices remained elevated given ongoing cost pressures throughout the supply chain.
"The knock-on effect from increased production and packaging costs meant that ready meals became more expensive and coffee prices were also up due to the high cost of coffee beans, as well as key producer nations exporting less.
"Meanwhile, the price of butter and vegetable oils started to come down as retailers passed on cost savings from further up the supply chain."
Mr Dickinson added that shoppers "should start to see food prices come down in the coming months" amid reductions in wholesale prices and other costs.
Head of retailer and business insight at NielsenIQ, Mike Watkins, said: "In recent weeks, more retailers have used loyalty schemes or money off promotions to help stimulate sales.
"However, with inflation yet to peak and sales volumes in decline in many channels, it's difficult to second guess the strength of consumer confidence."
The cost of living crisis is affecting many people:
Interest rates and inflation go up
Inflation rose by 8.8% in the 12 months to January 2023, down from 9.2% in December 2022. With interest rates also rising to 4%, those saving money will earn more interest on their finances, whilst those paying mortgages would pay more interest to the bank.
Energy bills
The price of energy went up incredibly as the cost of living crisis hit, with the gas price spike caused largely by the war in Ukraine. The price cap - which is set by an independent regulator to help offset costs onto customers - was set to rise to £3,549 for an average home in October but a price freeze from the government restricted the typical bill to £2,500. That's still an increase of 27% from the previous energy cap and as it's a cap on unit cost, the more energy you use the higher your bill will be.
Food prices
The cost of a weekly shop also has gone up as a result of the cost of living crisis. As a result of the war in Ukraine, a number of products including cooking oils and wheat have been disrupted. This means that several products are now considerably more expensive, driving bills up for customers.
Prices at the pumps
The average cost of petrol has also rose to unprecedented levels. Supply lines for petrol have been thrown into doubt as a result of the war in Ukraine, as Russia is a large export partner for gas, oil and fuel. In April 2022, the average price for a litre of petrol on the forecourt was 160.2p, whilst a litre of diesel would cost 170.5p. By late June 2022 the price had risen to an average of 190.9p for a litre of unleaded and 198.9p for a litre of diesel. In March 2023 the price wass on average of 147.03 in petrol and 167.04 in diesel.
Average cost of filling up a car with petrol hits £100
On 9th June 2022, the average cost of filling up a car with petrol hit £100 for the first time ever. Diesel had already hit that milestone. It comes as the cost of fuel hit a record high of one pound eighty a litre. The 2p rise was the biggest daily jump in 17 years. Prices have dropped by at least 20p per litre since the high point.