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UK's food price inflation jumps a record 10.6% amid Ukraine conflict

UK's food price inflation jumps a record 10.6% amid Ukraine conflict

Shoppers in the UK are reportedly paying 10.6% more for food as compared to last year, according to the latest figures.

As per reports, overall prices in shops hiked 5.7% in the twelve months to September, higher than the August inflation rate of 5.1%, reaching a record high since the British Retail Consortium-Nielson IQ index started in 2005.

Food price inflation in the country grew from 9.3% in August to 10.6% this month, prompted by the Ukraine conflict, which has led to high prices of vegetable oil, fertilizer, and animal feed, which has affected products like margarine in particular.

The cost of fresh food was 12.1% higher than last year, up from the 10.5% recorded in the twelve months to August, making it the highest rate for the segment on record.

Meanwhile, the store cupboard staples inflation went from 7.8% last month to 8.6%, which is the faster hike rate.

Although the summer season drought has impacted some harvests, the season’s sunshine has still helped to boost harvest yields and driven down the prices of tomatoes, blueberries, and strawberries.

On the other hand, non-food inflation jumped to 3.3% from 2.9% in August, fueled by increasing transport costs, which has led an increase in the prices of gardening,  DIY, and hardware products.

Helen Dickinson, CEO, British Retail Consortium, stated that retailers are fighting immense cost pressures with a weak pound, skyrocketing global commodity prices and energy bills, a tough labor market, and high transport costs, while also facing government-imposed costs.

Dickinson added that retailers will face an additional unaffordable tax rise worth £800 million ($776 million) when business rates rise by 10% coming April, adding that the government needs to urgently freeze business rates multipliers so retailers can do more in helping households.

Mike Watkins, Head of Retailer and Business Insight, NielsenIQ, stated that with rising household and food prices, it is unsurprising that the firm’s data shows that 76% of consumers are expecting to be moderately or severely affected in the coming three months due to the cost-of-living crisis. Earlier in summer, the figure was at 57%.

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Meghna Singh

An English Literature graduate, Meghna Singh ventured into the profession of content development to incorporate her knack for writing articles across verticals including technology, healthcare, business, and alike for News Origins and Newsorigins. She has also completed her MBA in Tourism and worked as a content creator in the field of product development.