// UK shop price inflation accelerated to a near 14-year high in June, data reveals
// Annual food inflation rose to 5.6% in June, from 4.3% in May, the highest rate since 11 years earlier
Shop prices have soared to hit their the highest point of inflation in 14 years, as retailers try to mitigate rising supply chain costs and shoppers tighten their purse strings.
According to the latest BRC-NielsenIQ Shop Price Index data, shop price annual inflation rose to 3.1% in June, up from 2.8% in May – the highest rate of inflation since September 2008.
Food inflation jumped to 5.6% in June, up from 4.3% in May, driven by fresh food prices rising 6.2% on June last year – the highest fresh food inflation rate since May 2009.
The figures follow the Office for National Statistics reporting that inflation rose from 9% in April to 9.1% last month, it’s highest rate in 40 years, amid record prices for petrol and the soaring cost of food.
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British Retail Consortium chief executive Helen Dickinson said: “Last month, households and businesses were hit by the highest rate of inflation since the 1980s, as near-record commodity prices in energy, transport and food filtered through the supply chain.
“Food prices rose sharply, particularly for fresh foods such as a cheese, which has been affected by the spiralling costs of fertiliser and animal feed.
“As households face the biggest real terms cut in income since the 1970s, and businesses grapple with upstream supply chain costs, retailers remain focused on protecting their customers. Fierce competition means retailers will continue to absorb as much of these cost pressures as possible.”