The rate of food inflation has reached an all-time high, with buyers paying 10.6% more than they did a year ago, while fresh food costs have increased by 12.1%.
The British Retail Consortium (BRC)-Nielsen IQ index began in 2005. In September, the British Retail Consortium (BRC)-Nielsen IQ index registered a new record high of 5.7%, up from 5.1% in August.
It comes as millions of families continue to suffer with the cost-of-living issue, which has resulted in skyrocketing food, energy, and mortgage costs.
This week, research from the accounting firm KMPG indicated that household savings had decreased by half since the beginning of the year, as cash-strapped Britons have been forced to tap into their savings as monthly expenses have increased by up to £194.40 on average.
Meanwhile, a falling pound, prompted by Chancellor Kwasi Kwarteng’s presentation of a mini-budget last week, has stoked fears that interest rates may hit 6% next year.
Millions of families with variable-rate mortgages or fixed-rate mortgages whose terms are about to expire may see their monthly payments increase by hundreds of pounds.
The crisis in Ukraine continues to drive up the cost of animal feed, fertilizer, and vegetable oil, which has a significant impact on margarine.
Fresh food products are currently 12,1% higher than last year, up from 10,5% in August – the highest inflation rate ever recorded for the sector.
The crisis in Ukraine continues to increase the cost of animal feed, fertilizer, and vegetable oil, which has a significant impact on margarine and other food goods. Fresh food products are currently 12,1% higher than last year, up from 10,5% in August – the highest inflation rate ever recorded for the sector.
Since the British Retail Consortium (BRC)-Nielsen IQ index debuted in 2005, September’s overall inflation rate of 5.7%, up from 5.1% in August, was yet another record high (stock photo)
Inflation for food consumed in the home also reached an all-time high of 8.6%, up from 7.8% the previous month – the category’s fastest rate of increase ever.
Nevertheless, while the summer drought reduced some harvests, the longer sunshine aided in lowering the prices of fruit such as strawberries, blueberries, and tomatoes.
Non-food inflation climbed from 2.9% in August to 3.3% in September, primarily as a result of heavier hardware, do-it-yourself, and gardening products that were severely impacted by higher transport costs.
Helen Dickinson, chief executive officer of the British Retail Consortium, stated, “Retailers are under enormous cost pressures due to the weak pound, rising energy costs and global commodity prices, high transport costs, a tight labor market, and the cumulative load of government-imposed expenditures.”
And with business rates due to increase by 10 percent in April of next year, stressed shops face an additional £800 million in prohibitive tax increases.
Government must freeze the business rates multiplier immediately in order to allow retailers greater room to assist households.
Mike Watkins, head of retailer and business insight at NielsenIQ, stated, ‘With food and home energy prices continuing to climb, it’s little surprise that 76% of consumers anticipate to be moderately or badly affected by the cost-of-living crisis over the next three months, up from 57% in the summer.
‘As a result, households will be seeking savings to assist them manage their personal finances this fall, and we expect consumers to become more cautious with discretionary spending, adding to the pressure on the retail industry.’