The index which tracks food inflation in the United Kingdom started in 2005. According to newly published data, food inflation in the UK has reached its highest levels since the inception of the index!
Data from NielsenIQ and the BRC reveals that food inflation in the UK was at 10.6% in September. During the month of August, the inflation was only at 9.3%, which tells us that inflation in the UK is rising instead of slowing down!
The inflation number for fresh food was 12.1% which was only at 10.5% in August. Numbers like this are the highest ever recorded in the respective categories, which have raised alarms among the authorities!
Vegetable Oil, Fertilizer, & Animal Feed Prices Are Also Higher
Ever since the Russia-Ukraine war, the prices of vegetable oil, fertilizer, and animal feed has been rising in the United Kingdom. All of these items are, in turn, putting pressure on a lot of other food items, which is ultimately pushing inflation higher!
One prime example is margarine which has seen its price soaring over the last few months. Similarly, other fresh food items have also increased in their post due to the higher cost of raw materials.
Another factor that contributes to food inflation is the drought during the summer season. However, some items actually benefited from the increased exposure to sunlight, such as tomatoes, blueberries, and strawberries.
Shop Price Inflation Is 5.7% In September
The annual inflation for the shop price was recorded at 5.7% during the month of September. As for the month of August, the inflation numbers were only at 5.1%.
The value for non-food inflation was around 3.3% during the month. This value also saw an increase as it was only 3.1% during the past 3 months.
Experts believe that the discretionary spending by consumers will slowdown in the next few months. That's why many retailers are now working towards plans to meet the increasing number of overheads.