Retail inflation hits fresh high
By Abigail Townsend
Date: Wednesday 02 Nov 2022
(Sharecast News) - Shop price inflation reached a fresh record high last month, research published on Wednesday showed, as the price of food continued to spike.
According to the latest BRC-Nielsen IQ Shop Price Index, shop price inflation reached 6.6% in October from 5.7% a month earlier. That was well above the three-month average of 5.5%, and the highest since the index began in 2005.
Within that, food inflation surged to 11.6% from 10.6% in September, the highest rate on record.
Fresh food saw the biggest prices hikes, with inflation at 13.3% against September's 12.1%, while ambient food inflation rose to 9.4% from 8.6%.
Non-food inflation also hit a series high, however, rising to 4.1% from 3.3%.
Helen Dickinson, chief executive of the British Retail Consortium, said: "It has been a difficult month for consumers, who not only faced an increase in their energy bills, but also a more expensive shopping basket.
"Prices were pushed up by because of the significant input cost pressures faced by retailers due to rising commodity and energy prices and a tight labour market."
Dickinson added that while "some" supply chain costs were now beginning to fall, it was being offset by the cost of energy.
Mike Watkins, head of retailer and business insight, NielsenIQ, said: "External factors are keeping shop price inflation at record highs, and the challenging economic conditions are significantly impacting consumer confidence and retail spend."
Christmas is the most important trading period of the year for many retailers, who generate the bulk of their profits in the last quarter of the year.
Said Watkins: "With pressure growing on discretionary spend across both non-food and food retail, delivering good value is the table stake in the battle for shopper loyalty over the next eight weeks."
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