According to the British Retail Consortium (BRC)-NIQ Shop Price Monitor, food prices have soared to their highest pace in 18-months as the price of eggs, butter and chocolate surges, this is the highest seen since February 2024.
The rapid acceleration in price hikes will โadd pressureโ to households who are already struggling to make ends meet.
In the month food inflation jumped to 4.1% as dairy prices are rising which is up from 3.2% in July.
Overall price inflation increased by 0.9% in August even though there has been a price deflation of 0.8% on non-food products, the report states.
Mike Watkins, head of retailer and business insight at NIQ, saidโ The uptick in prices reflects several factors: global supply costs, seasonal food inflation driven by weather conditions, the conclusion of promotional activity linked to recent sporting events, and a rise in underlying operational costs.
โAs shoppers return from their summer holidays, many may need to reassess household budgets in response to rising household bills.โ
Helen Dickinson, chief executive of the BRC, said, โShop price inflation hit its highest rate since March last year, fuelled by food price rises.
โThis adds pressure to families already grappling with the cost of living.
โRetailers continue doing everything they can to limit price rises for households, but as the Bank of England acknowledged, the ยฃ7 billion in new costs flowing through from last yearโs budget has created an uphill battle for retailers.โ
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