Surging meat and tea prices drive food price inflation up for sixth month

Surging meat and tea prices sent food price inflation up for the sixth consecutive month in July, latest figures show.

Food prices are now 4% higher than a year ago, up from 3.7% in June and the three-month average of 3.5%, according to the British Retail Consortium (BRC)-NIQ Shop Price Monitor.

Fresh food inflation held steady at 3.2%, but ambient food prices jumped to 5.1% higher than last June, up from last month’s 4.3%.

Overall shop price inflation increased to 0.7% from June’s 0.4% in June, and up from from the three-month average of 0.3%.

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Staples

BRC chief executive Helen Dickinson said: “Families will have seen their food bills increase as food price inflation rose for the sixth consecutive month.

“Staples such as meat and tea were hit the hardest as wholesale prices for both categories have been hit by tighter global supplies.

“This has helped push up overall shop prices. There were a few bright spots, with discounts in fashion and furniture offering consumers a chance to refresh their wardrobe and homes.”

Mike Watkins, head of retailer and business insight at NIQ, said: “Consumers’ household budgets are coming under pressure with the food retailers now seeing price increases above CPI (Consumer Price Index).

“However, price competition helped by promotional activity will still mean that shoppers can save money by shopping around.

“With inflation on the up, high street retailers will also be concerned about customer retention over the summer holiday season if they are to maintain sales momentum.”

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