Australia markets closed
  • ALL ORDS

    7,325.40
    +86.70 (+1.20%)
     
  • AUD/USD

    0.7124
    +0.0042 (+0.59%)
     
  • ASX 200

    7,071.00
    +78.30 (+1.12%)
     
  • OIL

    93.21
    +1.28 (+1.39%)
     
  • GOLD

    1,811.40
    -2.30 (-0.13%)
     
  • BTC-AUD

    34,707.01
    +963.32 (+2.85%)
     
  • CMC Crypto 200

    583.83
    +52.61 (+9.90%)
     

Consumers face sharpest food price rises in a decade

·2-min read
Consumers have been faced with the largest food price inflation in a decade and rises are set to continue   (Getty Images)
Consumers have been faced with the largest food price inflation in a decade and rises are set to continue (Getty Images)

Consumers have been hit by rising food prices due to inflation that is “likely to get worse before it gets better” over the coming months as the cost of living crisis shows no sign of abating with the steepest rises in goods for a decade.

According to the British Retail Consortium (BRC) food inflation accelerated to 4.3% in May, up from 3.5% in April, above the 12 and six month average price growth rates of 1.7% and 3.2%, respectively. This is the highest inflation rate rise since April 2012.

Fresh Food inflation rocketed in May to 4.5%, up from 3.4% in April, the highest inflation rate since November 2012.

Price inflation in shops climbed to 2.8% in May, up from 2.7% in April. This was above the 12 and six month average price increases of 0.7% and 1.9%, the highest spike in inflation since July 2011.

Helen Dickinson, CEO of the BRC, said: “It is likely to get worse before it gets better for consumers with prices continuing to rise and a further jump in energy costs coming in October. With little sign that the cost burden on retailers will ease any time soon, they will be left with little room for manoeuvre, especially those whose supply chains are affected by lockdowns in China and the war in Ukraine.

“Retail prices edged up further as commodity, energy and transport costs continued to climb. Fresh food inflation hit its highest rate in a decade, with items like poultry and margarine seeing some of the largest increases due to soaring costs of animal feed and near-record global food prices.”

There was some respite for consumers as non-food inflation decelerated to 2% in May, settling down from 2.2% in April.

Mike Watkins, head of retailer and business insight at research specialist NielsenIQ, said: “The acceleration in food inflation reflects the fact that retailers can no longer absorb the full extent of increased supply chain costs now hitting the industry.”

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting