Period Covered: 01 – 05 August
2022
- Shop Price annual inflation accelerated to 5.1% in August, up
from 4.4% in July. This is above the 3-month average rate of
4.1%. This marks a new record for shop price inflation since this
index started in 2005.
- Food inflation accelerated strongly to 9.3% in August,
up from 7.0% in July. This is above the 3-month average rate of
7.2%. This is the highest inflation rate since August 2008.
- Non-Food inflation decelerated to 2.9% in August, down from
3.0% in July. This is above the 3-month average rate of 2.6%.
Inflation remains near the series’ high in this category.
- Fresh Food inflation strongly accelerated in August to 10.5%,
up from 8.0% in July. This is above the 3-month average rate of
8.1%. This is the highest inflation rate since September 2008.
- Ambient Food inflation accelerated to 7.8% in August, up from
5.7% in July. This is above the 3-month average rate of 6.0%.
This is the fastest rate of increase since March 2009.
Helen Dickinson OBE, Chief Executive of the British
Retail Consortium, said:
“Mounting cost pressures up and down supply chains meant shop
price inflation hit a new high in August. The war in Ukraine, and
consequent rise in the price of animal feed, fertiliser, wheat
and vegetable oils continued to push up food prices. Fresh food
inflation in particular, surged to its highest level since 2008,
and products such as milk, margarine and crisps saw the biggest
rises.”
“The rise in shop prices is playing into wider UK inflation,
which some analysts are predicting could top 18% in 2023. The
situation is bleak for both consumers and retailers, but retail
businesses will remain committed to supporting their customers
through offering discounts to vulnerable groups, expanding value
ranges, fixing prices of essentials, and raising staff pay.
However, as retailers also grapple with growing cost pressures,
there is only so much they can shoulder. The new Prime Minister
will have an opportunity to relieve some of the cost burden
bearing down on retailers, like the upcoming increase in business
rates, in order to help retailers do more to help their
customers.”
Mike Watkins, Head of Retailer and Business Insight,
NielsenIQ, said:
“Inflation continues to accelerate and shoppers are already
cautious about how much they spend on groceries, with a fall in
volume sales at supermarkets in recent months. We can expect this
level of food inflation to be with us for at least another 6
months but hopefully some of the input cost pressures in the
supply chain will eventually start to ease. However, with further
falls in disposable incomes coming this autumn as energy costs
rocket again, retail spend will come under pressure in the
all-important final quarter of the year.”
