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15 May 2024

A new report released on behalf of the Retail Sector Council has outlined the work that the industry is doing to create more career opportunities for people that would otherwise be...

14 May 2024

A family of booklovers are moving from Australia to become the new owners of an independent bookshop in Halifax.

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Worldpay’s 2024 Global Payments Report has revealed a transformative shift where consumer choice is not just influencing but dictating the future of commerce.

13 May 2024

The Competition and Markets Authority (CMA) has called on grocers to prioritise accurate pricing following a review of the way in-store prices are displayed.

13 May 2024

Independent businesses in Leicester have praised the “uniqueness” of the city and its "vibrant" atmosphere after the news that M&S was set to close drew a...

1 May 2024

Small shops have been more "agile" at fighting COVID sale slumps than chain stores, according to a new report.

29 Apr 2024

A Peterborough store stocking products solely from local entrepreneurs said it is bucking the High Street trend and looking to expand due to its success.

29 Apr 2024

BIRA is giving independent businesses across the UK a powerful new resource with the launch of its “High Street Matters” podcast.

29 Apr 2024

The Guardian has reported independent shopkeepers saying prices they pay at Tesco’s cash-and-carry arm Booker are often higher than in Tesco’s stores.

18 Apr 2024

Independent record stores around the country are preparing to celebrate all things vinyl for this year’s Record Store Day on Saturday April 20th. 

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Shop price inflation hits record heights & peak is yet to arrive

Posted on in Business News

Shop prices have reached record highs after inflation accelerated in January, with a warning that the peak is yet to arrive.

family shopping

Prices are now 8% higher than they were last January, up from 7.3% in December and above the three-month average of 7.5%, according to the British Retail Consortium (BRC)-NielsenIQ Shop Price Index.

Overall food inflation rose to 13.8% from 13.3% in December – the highest inflation rate in the category on record.

Inflation on fresh food also reached a record high due to increased food production costs as well as elevated fruit and vegetable prices, accelerating to 15.7% from 15% in December.

Ambient food inflation saw the fastest increase on record as wholesale and bulk prices rose, particularly for sugar and alcohol, accelerating to 11.3% from 11% in December.

Meanwhile, clothing and footwear prices eased, allowing consumers to replenish their wardrobes during the January sales.

BRC chief executive Helen Dickinson said: “Retail prices rose in January as discounting slowed and retailers continued to face high input costs.

“With global food costs coming down from their 2022 high and the cost of oil falling, we expect to see some inflationary pressures easing.

“However, as retailers still face ongoing headwinds from rising energy bills and labour shortages, prices are yet to peak and will likely remain high in the near term as a result.”

Mike Watkins, head of retailer and business insight at NielsenIQ, said: “Consumer demand is likely to be weak in the first quarter due to the impact of energy price increases and, for many, Christmas spending bills starting to arrive.”

“So the increase in food inflation is going to put further pressure on household budgets and it’s unlikely that there will be any improvement in the consumer mind-set around personal finances in the near term.

“With shoppers having less money to spend on discretionary retail having paid for their essential groceries, there will be little to stimulate demand across the non-food channels.”

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