UK food inflation hits another record high in April

Food inflation hit another record high in April, although wider shop price inflation eased, according to the latest BRC-NielsenIQ shop price index released on Tuesday.

Food inflation rose to 15.7% from 15.0% in March, coming in above the three-month average rate of 15.1% and marking the highest inflation rate in the food category on record.

However, broader shop price annual inflation ticked down to 8.8% in April from 8.9% the month before amid Spring discounting. Nevertheless, it remains near record highs.

Non-food inflation fell to 5.5% from 5.9% in March, while fresh food inflation rose to 17.8% from 17.0% - the highest inflation rate in the fresh food category on record.

The figures also showed that ambient food inflation accelerated to 12.9% in April from 12.4% in March, the fastest rate of increase in the category on record.

Helen Dickinson, chief executive of the British Retail Consortium, said: "Overall shop price inflation eased slightly in April due to heavy Spring discounting in clothing, footwear, and furniture. However, food prices remained elevated given ongoing cost pressures throughout supply chain. The knock-on effect from increased production and packaging costs meant that ready meals became more expensive and coffee prices were also up due to the high cost of coffee beans, as well as key producer nations exporting less. Meanwhile, the price of butter and vegetable oils started to come down as retailers passed on cost savings from further up the supply chain.

"We should start to see food prices come down in the coming months as the cut to wholesale prices and other cost pressures filter through. In the meantime, retailers remain committed to helping their customers and keeping prices as low as possible. Government must also help by minimising the impact of oncoming regulatory burdens as these will hold back investment and ultimately contribute to ongoing high prices for already-squeezed households."

Victoria Scholar, head of investment at Interactive Investor, said: "While inflation remains elevated, there are incipient signs that price pressures are starting to cool. The hope is that food prices will come down in the months ahead, although it is more likely that price growth will just slow instead in the near-term as consumers continue to feel the squeeze from rising weekly food bills.

"The unfortunate nature of the type of inflation the UK is facing is that it is affecting essential items such as food, hitting those at the lower end of the income spectrum most acutely, particularly with real wage growth stuck in negative territory."