Proactive Investors - UK food price inflation hit a new record high in December according to the British Retail Consortium (BRC) which predicted 2023 would be another tough year for consumers and businesses.
Annual food inflation leapt to 13.3% in December, up from 12.4% in November, according to the figures compiled by the BRC and data firm Nielsen, the highest monthly rate since it began collecting data in 2005.
The BRC said high prices for animal feed, fertiliser and energy fed into increased food prices on supermarket shelves and cautioned that consumers would probably face further hikes this year.
“It was a challenging Christmas for many households across the UK,” said the BRC’s chief executive, Helen Dickinson.
“Not only did the cold snap force people to spend more on their energy bills, but the prices of many essential foods also rose as reverberations from the war in Ukraine continued to keep high the cost of animal feed, fertiliser and energy.”
Dickinson also warned “2023 will be another difficult year for consumers and businesses as inflation shows no immediate signs of waning.”
Inflation in fresh food was even higher with growth in early December hitting 15%, another record high, although the overall annual rate of shop price inflation reported by its members - mostly large retail chains and supermarkets - dropped to 7.3% from 7.4%.
This was driven by a drop in inflation for non-food items to 4.4% from 4.8%.