A warning has been issued to shoppers from Tesco, Asda, Morrisons, Sainsbury’s and all other UK retailers buying pasta, bread and baked beans after yet another cost of living crisis.
Household commodity prices have risen significantly over the past 12 months. It comes as figures released today (June 1) also show in-store prices rose at the fastest rate in more than a decade in May, due to rapidly accelerating food inflation.
Industry experts added that consumers’ situation will “get worse before it gets better” as prices continue to rise alongside other household bills. The latest BRC-NielsenIQ retail price index showed retail price inflation of 2.8% in May, the highest figure since July 2011.
READ MORE: Jubilee bank holiday shop opening hours and Royal Mail delivery changes
He said that had accelerated from a 2.7% rise in April, with rapidly rising food prices offsetting discounts and promotions on clothing and household items. Food inflation jumped to 4.3% in May from 3.5% in April, reaching its highest level since April 2012, while fresh food prices rose 4.5% and ambient foods , such as daily necessities, rose 4% for the month.
The Office for National Statistics said prices of unbranded pasta, bread and baked beans have jumped 50% in the past year. The statisticians chose 30 everyday items they know less well-off households buy regularly to get an idea of how inflation is hitting households.
Decreases were observed in the price of potatoes (14%), cheese (7%), pizza (4%), fries (3%), sausages (3%) and apples (1 %). As inflation hit a 40-year high of 9% in April, as measured by the consumer price index, the less well-off are spending a greater proportion of their income on basic expenses, such as energy bills.
Helen Dickinson, chief executive of the British Retail Consortium, said: “Retail prices rose further as raw material, energy and transport costs continued to rise. It is likely to get worse before it gets better for consumers, with prices continuing to rise and another rise in energy costs coming in October.
“Fresh food inflation has hit its highest rate in a decade, with items like poultry and margarine seeing some of the biggest increases due to soaring animal feed costs and near global food prices. record. Retailers have worked hard to protect their customers from these rising costs, especially at a time when households are being hit by a dramatic increase in household energy bills.
Mike Watson, Head of Retail and Business Insights at NielsenIQ, said: “Accelerating food inflation reflects the fact that retailers can no longer absorb the full supply chain cost increases. supply that is currently hitting the industry.
“Specials remain near historic lows and price drops rather than volume-based offers such as multiple purchases are now the best way for retailers to help their shoppers manage their household budgets. “