Shop prices have reached record highs across all categories as cost pressures from the war in Ukraine and Shanghai’s lockdown mount.

The rate of shop price inflation was 2.7% in April, up from 2.1% reported in March, according to the latest BRC-Nielsen shop price index, marking the highest rate of inflation since September 2011.

This was well above both the 12- and six-month average price increases of 0.4% and 1.5%, respectively.

Food prices rose to the highest rate of inflation since September 2013, up 3.5% in April from 3.3% in March.

Non-food prices rose at the highest rate since records began in 2006, accelerating 2.2% in April, up from 1.5% in March.

 

 

This was largely driven by categories including furniture, electricals and books as shipping and manufacturing costs were impacted by global supply chain issues.

Fresh food inflation decelerated slightly to 3.4%, down from 3.5% in March, marking the second-highest inflation rate since March 2013.

Ambient food prices rose 0.5% to 3.5% in April, the highest increase since January 2013.

BRC chief executive Helen Dickinson said: “The impact of rising energy prices and the conflict in Ukraine continued to feed through into April’s retail prices.

“Non-food products, particularly furniture, electricals and books, have seen the highest rate of inflation since records began. This has been exacerbated by disruption at the world’s largest seaport, following Shanghai’s recent lockdown.

“Food prices continued to rise, though fresh food inflation slowed as fierce competition between supermarkets resisted price hikes on many everyday essentials.”

“Global food prices have reached record highs, seeing a 13% rise on last month alone, and even higher for cooking oils and cereals. As these costs filter through the supply chain, they will place further upward pressure on UK food prices in the coming months.

“Retailers will continue to do all they can to keep prices down and deliver value for their customers by limiting price rises and expanding their value ranges, but this will put pressure on them to find cost savings elsewhere. Unfortunately, customers should brace themselves for further price rises and a bumpy road ahead.”

NielsenIQ head of retailer and business insight Mike Watkins added: “Inflation shows no signs of abating and the increase in non-food prices is an extra challenge for the high street as fragile consumer confidence and rising living costs are likely to negatively affect consumer spending.

“With food retailing no longer immune to these pressures, supermarkets are reacting by cutting the prices of some everyday grocery products including private label to help limit shop price inflation.”

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