Prices rising as costs bear down
Period Covered: 01 – 07 June 2022
Shop Price annual inflation accelerated to 3.1% in June, up from 2.8% in May. This is above the 12- and 6-month average price increases of 1.0% and 2.3%, respectively. This marks the highest rate of inflation since September 2008.
Food inflation strongly accelerated to 5.6% in June, up from 4.3% in May. This is above the 12- and 6-month average price growth rates of 2.2% and 3.7%, respectively. This is the highest inflation rate since June 2011.
Non-Food inflation decelerated to 1.9% in June, settling down from 2.0% in May. This is above the 12- and 6-month average price increases of 0.4% and 1.6%, respectively. Inflation remains close to the series’ high.
Fresh Food inflation strongly accelerated in June to 6.2%, up from 4.5% in May. This is above the 12- and 6-month average price growth rates of 2.2% and 4.0%, respectively. This is the highest inflation rate since May 2009.
Ambient Food inflation accelerated to 4.8% in June, up from 4.0% in May. This is above the 12- and 6-month average price increases of 2.1% and 3.3%, respectively. This is the highest rate of increase since May 2012.
Helen Dickinson OBE, Chief Executive of the British Retail Consortium, said:
“Last month households and businesses were hit by the highest rate of inflation since the 1980s as near-record commodity prices in energy, transport and food filtered through the supply chain. Food prices rose sharply, particularly for fresh foods such as cheese which has been affected by the spiralling costs of fertiliser and animal feed.
“As households face the biggest real terms cut in income since the at least 1970s and businesses grapple with upstream supply chain costs, retailers remain focused on protecting their customers. Fierce competition means that retailers will continue to absorb as much of these costs pressures as possible and look for efficiencies in their businesses. Supermarkets are also expanding their value ranges to offer a wider choice for customers trading down and providing discounts to vulnerable groups. Retailers are working to find more ways to protect their customers from the worst effects of inflation, but if costs continue to spiral, Government may need to find ways to help retail businesses support their customers.”
Mike Watkins, Head of Retailer and Business Insight, NielsenIQ, said:
“Whilst the fast-moving consumer goods industry is more insulated from any downturn in consumer expenditure, food retailing is not immune. As inflation accelerates due to rising energy, travel and now food costs, shoppers are now more likely to cut down on out of home consumption, shop to a fixed budget, switch to cheaper private label and seek out retailers where prices are the lowest.”
