The BRC-Nielsen Shop Price Index has revealed that inflation has reached yet another high across all categories for the second time this year.

Annual shop price inflation increased to a record high of 8.4% in February compared with 8% in January – higher than the three-month average of 7.8%.

Food inflation grew to a record 14.5% in February, up from 13.8% in January, surpassing the three-month average rate of 13.8%.

Fresh food also saw record highs with the inflation rate surging to 16.3% in February, up from 15.7% in January. This is higher than the three-month average rate of 15.6%.

Ambient food increased at its fastest ever rate to 12.2% in February, compared with 11.3% in January, accelerating past the three-month average rate of 11.5%.

Non-food inflation surged to 5.3% in February, up from 5.1% in January, reaching a record high for the second time in 2023.

 

BRC chief executive Helen Dickinson said: “Shop price inflation rose to another record high as retail prices across the board continued to react to the impact of soaring energy bills, higher running costs and tougher trading conditions brought about by the war in Ukraine.

“For non-food products, these factors particularly impacted gardening tools and pet food. Meanwhile, fresh food prices, especially vegetables, were also affected by a weaker pound, making produce imports from Europe more expensive.

“While we expect to see the annual inflation rate reduce in the second half of this year, retail prices will remain high over the coming months. Government must avoid any additional costs on business as this will jeopardise retailers’ ability to best support their customers and keep prices low throughout this cost-of-living crisis.”

NielsenIQ head of retailer and business insight Mike Watkins said: “With more than half (56%) of UK consumers feeling they are in a worse financial position compared with a year ago and inflation still stubbornly high, many households are trimming back on non-essential spending.

“And as volume sales are down on last year, some retailers are having to work even harder to encourage customer spend, including additional price cuts or promotional activity. This is likely to continue until consumer confidence starts to improve.”

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