Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Retail

UK Retailers Raise Prices By Most Since July 2011, Says BRC

British retailers raised prices at the fastest pace in more than a decade last month, driven by the rapidly rising cost of food and increased energy and transport costs for stores, the British Retail Consortium (BRC) has said.

The BRC, which represents supermarkets and other large retail chains, said average prices among its members last month were 2.8% higher than a year earlier, the biggest annual increase since May 2011.

The BRC's measure of inflation covers a narrower range of goods than Britain's official consumer prices index, which showed inflation hit a 40-year high of 9.0% in April off the back of surging energy prices and post-COVID bottlenecks.

Market researchers NielsenIQ said on Tuesday that British shoppers were visiting a greater number of supermarkets to seek out the cheapest groceries.

Food Prices 4.3% Higher

Food prices on the BRC's measure were up 4.3% on the year in May compared with a 3.5% rise in April, making it the largest food price rise since April 2012. Non-food prices rose 2.0%.

"Items like poultry and margarine (are) seeing some of the largest increases due to soaring costs of animal feed and near-record global food prices," BRC chief executive Helen Dickinson said.

Russia's invasion of Ukraine has interrupted exports of grain and vegetable oil, on top of pushing up energy prices which had already leapt before the war began in February.

Last month the Office for National Statistics said food and non-alcoholic drink prices rose 6.7% in the year to April, a bigger increase than the BRC. ONS data covers a wider range of food stores than the BRC and does not include 'buy one, get one free' offers.

Inflation Set To Rise

Dickinson said shops were likely to increase prices further later this year, when the BoE predicts consumer price inflation will exceed 10%.

"With little sign that the cost burden on retailers will ease any time soon, they will be left with little room for manoeuvre, especially those whose supply chains are affected by lockdowns in China and the war in Ukraine," she said.

News by Reuters, edited by ESM – your source for the latest retail news. Click subscribe to sign up to ESM: European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days