Period Covered: 01 – 07 July
2022
- Shop Price annual inflation accelerated to 4.4% in July, up
from 3.1% in June. This is above the 12- and 6-month average
price increases of 1.5% and 2.8%, respectively. This marks the
highest rate of shop price inflation since the index first
started in 2005.
- Food inflation strongly accelerated to 7.0% in July, up from
5.6% in June. This is above the 12- and 6-month average price
growth rates of 2.8% and 4.4%, respectively. This is the highest
inflation rate since May 2009.
- Non-Food inflation accelerated to 3.0% in July, up from 1.9%
in June. This is above the 12- and 6-month average price
increases of 0.8% and 2.0%, respectively. This was a record-high,
beating the previous record of 2.2% in April 2022.
- Fresh Food inflation strongly accelerated in July to 8.0%, up
from 6.2% in June. This is well above the 12- and 6-month average
price growth rates of 2.9% and 4.8%, respectively. This is the
highest inflation rate since May 2009.
- Ambient Food inflation accelerated to 5.7% in July, up from
4.8% in June. This is above the 12- and 6-month average price
increases of 2.5% and 3.8%, respectively. This is the fastest
rate of increase since April 2012.
Helen Dickinson OBE, Chief Executive of the British
Retail Consortium, said:
“July saw the highest rate of shop price inflation since our
index began in 2005, as heightened cost pressures continued to
filter through to customers. Rising production costs – from the
price of animal feed and fertiliser to availability of produce,
exacerbated by the war in Ukraine – coupled with exorbitant land
transport costs, led food prices to rocket to 7 per cent. Some of
the biggest rises were seen in dairy products, including lard,
cooking fats and butter. Meanwhile, non-food prices were hit by
rising shipping prices, production costs and continued disruption
in China.
“As inflation reaches new heights, retailers are doing all they
can to absorb as much of these rising costs as possible and to
look for efficiencies in their businesses and supply chain. With
households enduring a cost-of-living crunch, retailers are
expanding their value ranges to offer the widest variety of goods
to those most in need, providing discounts to vulnerable groups,
and raising staff pay. Nevertheless, households and businesses
must prepare for a difficult period as inflationary pressures hit
home.”
Mike Watkins, Head of Retailer and Business Insight,
NielsenIQ, said:
“Consumers’ household budgets are coming under increasing strain
and shelf price increases in both food and non-food have
accelerated in recent weeks as more cost prices increases come
through the supply chains. The grocery industry in particular is
under intense pressure as retailers try to shield customers from
the full impact of inflation. At the same time there has been an
increase in competitive intensity so customer retention over the
summer holiday season will be key to help stem any further fall
in volumes.“
