Newsletter 6th December 2022

12.4% UK Food Price Inflation

Food price inflation in the United Kingdom reached a new high of 12.4% in November, as the cost of staples such as eggs, dairy products, and coffee rose.

According to the latest figures from the British Retail Consortium trade body, which represents most major retailers, and market research company NielsenIQ, fresh foods led the price increase, with inflation climbing to 14.3% from 13.3% in October, with gains anticipated to continue into next year.

Overall retail price inflation increased to 7.4% in November, up from 6.6% the previous month, a level not seen since at least 2005, as products such as sporting equipment increased in price.

The spike in the cost of basics is expected to strike poorer families the hardest since many are already battling with increasing energy costs and have fewer alternatives for making sacrifices and savings.

Higher-income people may combat inflation by cutting non-essentials like dining out and vacations and moving to cheaper items, such as shopping at discounters like Aldi and Lidl or purchasing own-label goods from large supermarkets.

Retail executives predicted that the cost of Christmas would be more significant this year, despite a wave of discounts intended to promote an increase in spending during the last month of the year, when most firms generate the majority of their profits.