Food inflation hit a record annual rate in December as cash-strapped households prepared for Christmas, according to a retail sector report.
The latest British Retail Consortium-NielsenIQ shop price index showed typical food grocery costs up 13.3% last month compared with December 2021.
The rate had stood at 12.4% in November.
The data showed fresh food costs contributed most to the rise, through a 15% hike on an annual basis.
Even so-called ambient food – such as pasta and tinned goods – were up 11% by the same measure.
However, the report noted that away from food there were some savings to be had for shoppers, as the overall shop price inflation rate eased slightly to 7.3% for the month.
This was mostly a consequence of some discounting among non-food retailers in the run-up to Christmas, according to the BRC.
Its chief executive, Helen Dickinson, said the festive season had clearly been “challenging” for families given the scale of the cost of living crisis.
“Not only did the cold snap force people to spend more on their energy bills, but the prices of many essential foods also rose as reverberations from the war in Ukraine continued to keep high the cost of animal feed, fertiliser and energy,” she said.
“Non-food price rises eased as some retailers used discounting to shed excess stock built up during the disruptions to supply chains, meaning some customers were able to bag bargain gifts.
“The combined impact was that price increases overall plateaued, with the reduction in non-food inflation offsetting the higher food prices.”
The New Year is not set to deliver any major turnaround in economic fortunes, with demand held back by high inflation and rising interest rates to help tackle the pace of price rises.
It is hoped…
