Shoppers face a £180 annual increase on food bills, new data suggests.
Food inflation continues to increase to 2.7% in January, up from 2.4% in December, with the latest data from British Retail Consortium (BRC).
Savoury snacks, fresh beef and crisps prices were rising fastest, while falling in vitamins, fresh bacon and beer, Kantar noted.
Helen Dickinson OBE, Chief Executive of the British Retail Consortium, noted: “Food prices continue to rise, especially domestic produce which have been impacted by poor harvests, labour shortages, and rising global food prices.”
Speaking to Sky News, Fraser McKevitt, analyst at Kantar, says “this rise in prices could add an extra £180 to the average household’s annual grocery bill,”
Shop prices annual inflation accelerated to 1.5% in January, up from 0.8% in December- the highest rate of inflation since December 2012. Retailers warn this will only increase in 2022.
Due to the rise in all shop prices, it will directly affect the living crisis.
Ms Dickinson added: “The rise in shop prices is playing into wider UK inflation, which is pushing cost of living to the forefront of the political agenda. Many households will find it difficult to absorb the additional costs, as well as others on the horizon. Retailers are working hard to cut costs, but it would be impossible to protect consumers from any future rises.”
Furniture and flooring saw the highest prices due to high demand leading to rising oil costs making shipping more expensive.
Sales of vegan and low-alcohol products increased for Veganuary and Dry January.