British customers struggle with high shop prices| MENAFN.COM

Monday, 08 August 2022 03:42 GMT

British customers struggle with high shop prices


(MENAFN) Shop price inflation in the UK reached its highest rate since 2008 last month, over a sharp rise in perishable food costs, due to high supply-chain prices and a fall in consumer expenditure, The Guardian announced on Wednesday, mentioning information from the British Retail Consortium BRC-NielsenIQ shop price index.

Shop costs were up by 3.1 percent annually in July, up from 2.8 percent in May. Food inflation alone rose to 5.6 percent last month, from 4.3 percent in May, while fresh food costs surged 6.2 percent against records of 2021, their highest rate since May 2009, driven by the “spiraling costs of fertilizer and animal feed.”

The BRC information follows the latest numbers from the UK’s Office for National Statistics, which indicated that total UK inflation rose to 9.1 percent in May, a 40-year high amid record fuel costs and the increasing food prices.

The situation might push UK consumers to alter their spending habits, Mike Watkins, the chief of retailer and business insight at NielsenIQ, states.

“As inflation accelerates due to rising energy, travel and now food costs, shoppers are now more likely to cut down on out-of-home consumption, shop at a fixed budget, switch to cheaper private label[s] and seek out retailers where prices are the lowest,” Watkins said.

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