Food inflation has hit a new record at 12.4 per cent amid a forecast of dampened Christmas cheer and an “increasingly bleak” winter.
Setting a record for the British Retail Consortium, whose tracking began in 2005, shop prices are up from 6.6 per cent in October and are now 7.4 per cent higher than last November.
But food inflation accelerated considerably further from October’s 11.6 per cent – which was also the highest rate on record — as soaring energy, animal feed and transport costs forced up prices.
The BRC-Nielsen IQ Shop Price Index shows fresh food inflation rose even higher to 14.3 per cent, up from 13.3 per cent last month, driven particularly by the cost of meat, eggs and dairy.
Coffee prices “shot up” as high input costs filtered through to prices, while Christmas gifts are also set to become more expensive than in previous years.
There are particularly steep increases in sports and recreation equipment, the BRC said.
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“Winter looks increasingly bleak as pressures on prices continue unabated," said BRC chief executive Helen Dickinson.
“While there are signs that cost pressures and price rises might start to ease in 2023, Christmas cheer will be dampened this year as households cut back on seasonal spending in order to prioritise the essentials.”
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Mike Watkins, head of retailer and business insight at NielsenIQ, said: “With prices still rising, the cost of Christmas will be higher this year and shoppers will be managing their budgets more closely than at any time since the start of the cost-of-living crisis.
“Retailers are now responding by offering seasonal savings and price cuts, and will be hopeful of an uptick in shopper spend as we move into December.”
