Shop price inflation grows to 8.9% in March

The British Retail Consortium found that for the first seven days of March annual shop price inflation increased to 8.9% from 8.4% in February. This is above the 3-month average rate of 8.4%, bringing shop price growth to a new high. 

Meanwhile, non-food inflation accelerated to 5.9% in March, up from 5.3% the prior month. This is above the 3-month average rate of 5.4%. 

Food inflation rose to 15% in March, up from 14.5% in February, which is also above the 3-month average rate of 14.5%, and is the highest inflation rate in the food category on record. 

The BRC also saw inflation affect fresh produce, as prices rose to 17% in March, up from 16.3% in February, also surpassing the 3-month average rate of 16.4% breaking the record as the highest inflation rate. 

In addition, ambient food inflation accelerated to 12.4% in March, up from 12.2% in February, showing the fastest rate of increase in the ambient food category on record.

Helen Dickinson, chief executive of the BRC, said: “Shop price inflation has yet to peak. As Easter approaches, the rising cost of sugar coupled with high manufacturing costs left some customers with a sour taste, as price rises for chocolate, sweets and fizzy drinks increased in March. Fruit and vegetable prices also rose as poor harvests in Europe and North Africa worsened availability, and imports became more expensive due to the weakening pound.

“Food price rises will likely ease in the coming months, particularly as we enter the UK growing season, but wider inflation is expected to remain high. Retailers continue to work hard to keep prices, particularly of essentials, as low as possible by expanding value ranges and offering discounts for vulnerable groups.” 

She added: “Government must also minimise oncoming regulatory burdens, as these will serve as a drag on investment and will ultimately contribute to higher prices for UK consumers.”