Period Covered: 01 – 07 February
2022
- Shop Price annual inflation accelerated to 1.8% in February,
up from 1.5% in January. This is above the 12- and 6-month
average price decrease of 0.3% and increase of 0.5%,
respectively. This marks the highest rate of inflation since
November 2011.
- Non-Food inflation accelerated to 1.3% in February, up from
0.9% in January. This is above the 12- and 6-month average price
decreases of 0.9% and 0.1%, respectively. This marks the highest
rate of inflation since September 2011.
- Food inflation remained unchanged at 2.7% in February. This
remains above the 12- and 6-month average price growth rates of
0.7% and 1.6%, respectively. This is the highest inflation rate
since September 2013.
- Fresh Food inflation accelerated in February to 3.3%, up from
2.9% in January. This is above the 12- and 6-month average price
growth rates of 0.4% and 1.7%, respectively. This is the highest
inflation rate since March 2013.
- Ambient Food inflation slowed to 2.0% in February, down from
2.4% in January. This is above the 12- and 6-month average price
increases of 1.1% and 1.4%, respectively.
Helen Dickinson OBE, Chief Executive of the British
Retail Consortium, said:
“Retail prices rose in February at their fastest rate in over a
decade. Food inflation remained the key driver behind higher
prices, particularly for fresh food which has been impacted by
poor harvests, both in the UK and globally. Meanwhile, the
increase from last month is a result of rising prices for
non-food products, particularly health, beauty and furniture.
There is little sign of change, with the Bank of England
predicting price rises to continue until at least the
Spring.”
“Price rises will be unwelcome news for households who already
face falling disposable income because of the rise in national
insurance and energy price caps. Retailers continue to face cost
pressures from higher shipping rates, with crude oil prices
having almost doubled over the last year. Other pressures include
labour shortages, commodity price increases, and rising energy
prices. Retailers are going to great lengths to mitigate against
these price rises and support their customers, for example, many
supermarkets have expanded their value ranges for food.
Unfortunately, there are limits to the costs that retailers can
absorb.”
Mike Watkins, Head of Retailer and Business Insight,
NielsenIQ, said:
“Inflation has increased since the start of the year and the
underlying trend in shop prices will be upwards over the next few
months. With falling disposable income for most households,
retailers will need to keep encouraging customers to spend by
offering choice and value and for some, discounts as well as
added benefits for loyal shoppers”
-ENDS-
Notes:
- The Shop Price Index is based on a basket of 500 essential
goods: 250 food and 250 non-food. This makes it an effective
measure of price changes across basic retail goods, not across
all retail goods or across broader inflation as measured by the
CPI, which includes other areas like housing costs and travel.
