The latest figures show food prices are increasing at the greatest rate since records began, but every day items like eggs, meat, and dairy are being hit the hardest.
Food inflation reached 12.4% this month, up from 11.6% last month and the highest rate seen in the food category since records began in 2005. Data from the most recent BRC-NielsenIQ Shop Price Index shows that meat, eggs, and dairy have become more expensive, with fresh food inflation skyrocketing to 14.3%.
The price increase is likely due to the rise in energy costs which has impacted animal feed and transport costs. The index is a report that looks at the price of an average basket of items (food and non-food) to measure the change in price over time.
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Consumers won't be surprised to learn that fresh food isn't the only thing getting more expensive, with the price of things like coffee also rising. As the festive season looms, the report warns that Christmas gifting is also set to become more expensive than in previous years, with sports and recreation equipment seeing particularly high increases.
BRC chief executive Helen Dickinson said: “Winter looks increasingly bleak as pressures on prices continue unabated. While there are signs that cost pressures and price rises might start to ease in 2023, Christmas cheer will be dampened this year as households cut back on seasonal spending in order to prioritise the essentials.”
Mike Watkins, head of retailer and business insight at NielsenIQ, said: “With prices still rising, the cost of Christmas will be higher this year and shoppers will be managing their budgets more closely than at any time since the start of the cost-of-living crisis. Retailers are now responding by offering seasonal savings and price cuts and will be hopeful of an uptick in shopper spend as we move into December.”
The Confederation of British Industry (CBI) have also reported that business confidence is on a decline, and has been for the first three quarters of this financial year. Profitability continued to drop in the three months to November as cost and price growth remained well above average.
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