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Shop prices at highest inflation rate since 2008

Shop prices increased to the highest rate of inflation since September 2008 in June as retailers remain focused on protecting their customers.

According to the latest BRC-NielsenIQ Shop Price Index for June 2022, Shop Price annual inflation accelerated to 3.1%, up from 2.8% in May. This is above the 12- and 6-month average price increases of 1% and 2.3%, respectively.

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.

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.

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.

“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.”

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