Food prices rise at third fastest monthly rate in a year
Breakfast, in particular, got more expensive as butter, cheese, eggs, bread and cereals all saw price hikes.
Food prices have risen at their third fastest monthly rate in a year amid hikes in the cost of butter, cheese, eggs and bread, figures show.
The price of other breakfast staples including cereals and coffee are also continuing to soar, taking food inflation to 2.1% in February, a jump from January’s yearly growth of 1.6%, according to the British Retail Consortium (BRC)-NIQ Shop Price Index.
Fresh food prices are now 1.5% higher than a year ago, also a hike from January’s 0.9%, while ambient food inflation increased to 2.8% from 2.5% in January.
BRC chief executive Helen Dickinson said: “While shop prices remained in deflation in February, prices on the month saw the biggest increase in the last year.
“Breakfast, in particular, got more expensive as butter, cheese, eggs, bread and cereals all saw price hikes. Climbing global coffee prices could threaten to push the morning costs higher in the coming months.”
The BRC has already said it expects food inflation to hit 4% by the second half of the year amid geopolitical tensions and the imminent £7 billion increase in costs from the autumn budget.
“It can start by ensuring no shop ends up paying more than they already do under the new business rates proposals and delaying the new packaging taxes.”
Mike Watkins, head of retailer and business insight at NielsenIQ, said: “With many household bills increasing over the next few weeks, shoppers will be looking carefully at their discretionary spend and this may help keep prices lower at non-food retailers.
“However, the increase in food inflation is likely to encourage even more shoppers to seek out the savings available from supermarket loyalty schemes.”
