Highest food inflation for a year
Overall shop price inflation increased marginally in August to 1.7% from 1.5% in July
Food inflation increased to 3.8% in August from 2.5% in July, the highest since July 2009 when it was also 3.8%. Non-food inflation slowed to 0.5% from 1.0% in July
Stephen Robertson, British Retail Consortium Director General, said: “Non-food inflation continues to fall and is at its lowest since November 2009. But food inflation is up to a 13-month high.
“Past rises in the cost of global commodities, such as wheat and sugar, are filtering through to food prices.
“But we’re nowhere near the return of the double-digit food inflation of two years ago. Despite its recent increase, wheat is over a third cheaper than its peak in 2008, while oil prices are virtually half of what they were back then.
“In response, retailers are offering more deals. Milk and bread are particularly competitive battlegrounds. A third of groceries are now on promotion and customers are shopping around.”
Mike Watkins, Senior Manager, Retailer Services, Nielsen added: The August Shop Price Index reflects a month where weather, seasonal food inflation, some commodity price increases, the end of early summer promotions and discounting in non foods, contributed to a slight upward movement in shop prices. However, as shoppers return from their summer holidays many will review household budgets again and we can expect to see retailers putting together some strong autumn promotions to tempt shoppers to maintain spending on the high street.”
