Period Covered: 01 – 07 March
2022
- Shop Price annual inflation accelerated to 2.1% in March, up
from 1.8% in February. This is above the 12- and 6-month average
price increases of 0.1% and 1.1%, respectively. This marks the
highest rate of inflation since September 2011.
- Food inflation accelerated to 3.3% in March, up from 2.7% in
February. This is above the 12- and 6-month average price growth
rates of 1.0% and 2.2%, respectively. This is the highest
inflation rate since March 2013.
- Non-Food inflation accelerated to 1.5% in March, up from 1.3%
in February. This is above the 12- and 6-month average price
decrease of 0.4% and increase of 0.4%, respectively. This
marks the highest rate of inflation since February 2011.
- Fresh Food inflation accelerated in March to 3.5%, up from
3.3% in February. This is above the 12- and 6-month average price
growth rates of 0.8% and 2.4%, respectively. This is the highest
inflation rate since March 2013.
- Ambient Food inflation accelerated to 3.0% in March, up from
2.0% in February. This is above the 12- and 6-month average price
increases of 1.2% and 1.8%, respectively. This is the highest
rate of increase since April 2019.
Helen Dickinson OBE, Chief Executive of the British
Retail Consortium, said:
“Consumers were hit once again by rising prices, with March
seeing the fifth consecutive month of inflation. There have been
mounting cost pressures throughout the supply chain for some
time, including rising wages, input costs, global commodity
prices, energy, and transport. Many of these costs are beginning
to be exacerbated by the situation in Ukraine, but the full
impact on prices is yet to be seen. Wheat prices have risen
sharply, while the rise in oil prices has not only impacted
domestic energy costs, but also the costs of fertiliser and
transporting goods.
“Our Shop Price Index has been rising more modestly than other
inflation measures as retailers were able to limit price rises on
many essential goods. By keeping the prices of key items down and
expanding value ranges, retailers are trying to support customers
most affected by the cost-of-living squeeze, many of whom will
face higher energy prices and National Insurance Contributions
from 1 April. With overall inflation likely to rise even higher
according to the Bank of England, consumers will not have an easy
ride this year. The war in Ukraine, and volatility in commodity
markets is likely to further dampen consumer confidence in the
coming months."
Mike Watkins, Head of Retailer and Business Insight,
NielsenIQ, said:
“With cost-of-living increases accelerating, the next few months
will be a difficult time for consumers. Rising food prices
will start to impact what’s put in the shopping basket so
supermarkets will need to adapt ranges to help shoppers manage
what they spend on their weekly groceries. Whilst high street
retailers will be competing for discretionary spend that’s coming
under increasing pressure”
