Price Inflation Hits a New High in July
July’s numbers show shop prices jumping by 0.7% year‑over‑year, a bump from June’s 0.4%. That’s a bit higher than the 3‑month average of 0.3%, meaning your grocery bill is feeling the heat.
What’s Really Rising?
- Food inflation up by 4.0% (June: 3.7%) – gut‑watering but wallet‑sizzling.
- Fresh food is holding steady at 3.2% (June: 3.2%), still higher than the 3‑month average of 2.9%.
- Ambient food (think pre‑packaged meals) leapt to 5.1% (June: 4.3%), surpassing the average of 4.2%.
- Meanwhile, non‑food items barely dipped, moving from a -1.2% decline in June to a -1.0% drop in July – still comfortably above the 3‑month average of -1.2%.
Why the Food Prices Keep Rising
According to Helen Dickinson, CEO of the BRC, food bills are climbing because staples like meat and tea are seeing the biggest price hikes. Global supply snags have tightened, pushing up wholesale costs and spilling over into the shelves.
At least some things are cheaper: everyone loves a good deal. Discounts in fashion and furniture give shoppers a chance to revamp wardrobes and living spaces without breaking the bank.
What the Government Might (Need to) Do
Helen warns that if the next Budget drags on, families could see more price ticks. “Retailers are already doing their best to shield customers from spikes, but last year’s £7bn tax cost forced most to raise prices. Future tax hikes could lock in inflation, making dinner a costly affair,” she explains.
Retailers’ Take‑away
Mike Watkins, Head of Retailer and Business Insight at NIQ, points out that shoppers can still save through price competition and promotions – just shop around and grab the sweet spot.
He adds that the high street is worried about keeping customers over the summer. With inflation climbing, staying loyal can be a challenge if prices keep rising.
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