UK retailers raise prices by most since July 2011 - BRC

By David Milliken

LONDON – British retailers raised costs on the quickest tempo in additional than a decade final month, pushed by the quickly rising value of meals and elevated vitality and transport prices for shops, an trade physique mentioned on Wednesday.

The British Retail Consortium (BRC), which represents supermarkets and different massive retail chains, mentioned common costs amongst its members final month have been 2.8% greater than a 12 months earlier, the largest annual enhance since Might 2011.

The BRC‘s measure of inflation covers a narrower vary of products than Britain’s official shopper costs index, which confirmed inflation hit a 40-year excessive of 9.0% in April off the again of surging vitality costs and post-COVID bottlenecks.

Market researchers NielsenIQ mentioned on Tuesday that British customers have been visiting a higher variety of supermarkets to hunt out the most cost effective groceries.

Meals costs on the BRC‘s measure have been up 4.3% on the 12 months in Might in contrast with a 3.5% rise in April, making it the biggest meals worth rise since April 2012. Non-food costs rose 2.0%.

“Gadgets like poultry and margarine (are) seeing a few of the largest will increase because of hovering prices of animal feed and near-record world meals costs,” BRC chief government Helen Dickinson mentioned.

Russia’s invasion of Ukraine has interrupted exports of grain and vegetable oil, on high of pushing up vitality costs which had already leapt earlier than the battle started in February.

Final month the Workplace for Nationwide Statistics mentioned meals and non-alcoholic drink costs rose 6.7% within the 12 months to April, a much bigger enhance than the BRC. ONS knowledge covers a wider vary of meals shops than the BRC and doesn't embody ‘purchase one, get one free’ affords.

Dickinson mentioned retailers have been prone to enhance costs additional later this 12 months, when the BoE predicts shopper worth inflation will exceed 10%.

“With little signal that the associated fee burden on retailers will ease any time quickly, they are going to be left with little room for manoeuvre, particularly these whose provide chains are affected by lockdowns in China and the battle in Ukraine,” she mentioned.