UK consumers have seen a further rise in the cost of everyday essentials, with food prices rising at a record rate in the year to November.
New figures from the British Retail Consortium (BRC) reveal that overall shop price annual inflation accelerated to 7.4% in November, up from 6.6% in October. This is the fastest rate since the index was launched in 2005.
Food inflation in November climbed to an unprecedented 12.4%, up from 11.6% in October.
“Food prices have continued to soar, especially for meat, eggs and dairy, which have been hit by rocketing energy costs, and rising costs of animal feed and transport,” said BRC chief executive Helen Dickinson. “Coffee prices also shot up on last month as high input costs filtered through to price tags.”
Dickinson added that while there are signs that cost pressures, and price rises, might start to ease in 2023, households are likely to cut back on seasonal spending this Christmas.
Mike Watkins of NielsenIQ, which carried out the research, 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 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.”