LONDON, May 5 (NNN-AGENCIES) – Shop prices in Britain rose at an annual rate of 2.7 percent in Apr, marking the highest rate of inflation since Sept, 2011, said the British Retail Consortium (BRC), yesterday.
Non-food inflation accelerated to 2.2 percent in Apr, the highest rate of inflation since this data series began in 2006, and the food inflation rose by an annual 3.5 percent in Apr, the biggest rise since Mar, 2013, according to the BRC.
“The impact of rising energy prices and the conflict in Ukraine continued to feed through into Apr’s retail prices,” said the BRC Chief Executive, Helen Dickinson.
“Global food prices have reached record highs, seeing a 13 percent rise on last month alone, and even higher for cooking oils and cereals. As these costs filter through the supply chain, they will place further upward pressure on UK food prices in the coming months,” she warned.
Mike Watkins, head of Retailer and Business Insight from NielsenIQ, agreed, and said, the inflation shows “no signs of abating.”
The increase in non-food prices brought an extra challenge for the high street, as fragile consumer confidence and rising living costs are likely to negatively affect consumer spending.
The surging shop prices, surveyed by the BRC, echoed the rise of Britain’s official consumer prices index (CPI). The BRC studied prices of the most commonly bought items in the stores, while the CPI covers a broader range of household goods and services.
Data showed Britain’s CPI rose by seven percent in Mar, hitting a new 30-year high. It is expected to surge further, mainly due to a much higher energy price cap, since Apr.– NNN-AGENCIES
