Yearly fresh food inflation reached the highest inflation rate since May 2009.
Shop price inflation in the UK accelerated to a near 14-year high in June, powered by a sharp rise in food prices as retailers battle rising supply chain expenses and a decline in consumer spending.
Shop prices were up by 3.1% in June, up from 2.8% in May, the highest rate of inflation since September 2008, powered by 5.6% growth in food prices, according to figures from the latest British Retail Consortium-NielsenIQ tracker.
Yearly fresh food inflation alone raced to 6.2% in June versus 4.5% in May — the highest inflation rate since May 2009.
It comes after the latest figures from the Office for National Statistics showed that UK inflation rose to 9.1% in May, setting a new 40-year high amid record prices for petrol and the rising cost of food.
UK inflation hits 40 year high of 9.1% in May
"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," said Helen Dickinson, chief executive at the BRC.
"Whilst the fast-moving consumer goods industry is more insulated from any downturn in consumer expenditure, food retailing is not immune," addedMike Watkins, head of retailer and business insight at NielsenIQ.
"As inflation accelerates due to rising energy, travel and now food costs, shoppers are now more likely to cut down on out of home consumption, shop to a fixed budget, switch to cheaper private label and seek out retailers where prices are the lowest."
