// Food inflation has hit its highest rate on record, with shoppers now paying 10.6% more than they were a year ago
// Overall shop price inflation accelerated to 5.7% in September, up from 5.1% in August
Shop prices and food inflation hit record highs in September, figures show.
Overall shop price inflation rose to 5.7% in September, up from 5.1% in August to mark another record since the British Retail Consortium (BRC)-Nielsen IQ index began in 2005.
Food inflation accelerated to 10.6% in September, up from 9.3% the previous month, representing the highest rate of food inflation on record, driven by the war in Ukraine continuing to push up the price of animal feed, fertiliser and vegetable oil.
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Fresh food products are now a record 12.1% higher than last year, up from 10.5% in August – the highest inflation rate for the category on record.
Non-food inflation rose from 2.9% in August to 3.3%, largely driven by heavier hardware, DIY and gardening products hit hard by rising transport costs.
BRC chief executive Helen Dickinson said: “Retailers are battling huge cost pressures from the weak pound, rising energy bills and global commodity prices, high transport costs, a tight labour market and the cumulative burden of government-imposed costs.
“And, with business rates set to jump by 10% next April, squeezed retailers face an additional £800 million in unaffordable tax rises.”
Market research firm NielsenIQ said 76% of consumers expected to be moderately or severely affected by the cost-of-living crisis over the next three months, up from 57% in the summer.
NielsenIQ head of retailer and business insight Mike Watkins said: “It’s no surprise that 76% of consumers are saying they expect to be moderately or severely affected by the cost-of-living crisis over the next three months, up from 57% in the summer.”
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