Poultry amongst worst affected by food inflation, says BRC
Chief executive of the British Retail Consortium (BRC) Helen Dickinson OBE said that rising food inflation has meant items such as poultry have seen “some of the largest increases due to soaring costs of animal feed and near-record global food prices.”
Dickinson explained that retailers have been “working to protect their customers” from the rising retail prices that continue to edge up as commodity, energy and transport costs continued to climb.
She added that it is “likely to get worse before it gets better for consumers”, with prices continuing to rise and a further jump in energy costs predicted for October.
Dickinson explained: “With little sign that the cost burden on retailers will ease any time soon, they will be left with little room for manoeuvre, especially those whose supply chains are affected by lockdowns in China and the war in Ukraine. While many people will welcome the government’s latest announcement of support, uncertainty in the future of energy prices means they may only provide temporary respite.”
Food inflation is up from 3.5% in April 2022, placing the rate of growth above the 12- and six-month average price growth rates of 1.7% and 3.2%, respectively.
Fresh Food inflation accelerated in May to 4.5%, up from 3.4% in April. This is the highest inflation rate since November 2012.
Ambient Food inflation also saw the highest rate of increase since January 2013. Inflation in this category rose 4% in May, up from 3.5% in April.
Mike Watkins, head of retailer and business insight, NielsenIQ, said: “The acceleration in food inflation reflects the fact that retailers can no longer absorb the full extent of increased supply chain costs now hitting the industry. Promotions remain close to an all-time low and price cuts rather than volume-based offers such as multibuy are now the best way for retailers to help their shoppers manage their household budgets.”
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