Food inflation hits another record high but clothing price rises ease

02 May 2023 , 07:15

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Food inflation has hit another record high (Image: Getty Images)

Food inflation has hit another record high - but there’s some good news as clothing price rises have eased.

The latest BRC-NielsenIQ shop price index found food prices soared 15.7% in the year to April, the highest on record.

However, spring discounting at fashion and furniture stores meant wider retail inflation slowed for the month.

The fresh figures reported shop price inflation of 8.8% in April against the same month a year earlier, easing slightly from 8.9% in March.

It came as non-food stores recorded inflation of 5.5% for the month, slipping from 5.9% in March as shops reduced prices in a bid to attract customers.

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Helen Dickinson, chief executive of the British Retail Consortium, said: “Overall shop price inflation eased slightly in April due to heavy spring discounting in clothing, footwear, and furniture.

“However, food prices remained elevated given ongoing cost pressures throughout the supply chain.

“The knock-on effect from increased production and packaging costs meant that ready meals became more expensive and coffee prices were also up due to the high cost of coffee beans, as well as key producer nations exporting less.

“Meanwhile, the price of butter and vegetable oils started to come down as retailers passed on cost savings from further up the supply chain.”

There are different measures of inflation, with each painting a slightly different picture of how much food prices are rising by.

Consumer Price Index (CPI) inflation - used as the main headline figure of inflation - dipped to 10.1% in March after being largely propped up by the highest rate for food and drink since 1977.

The ONS puts food and non-alcoholic drink inflation at 19.1%.

But analysts at Kantar say grocery inflation dipped slightly to 17.3% according to figures released last month - down marginally from a record 17.5%.

Crucially, this doesn’t mean prices are falling - they are still going up, but just at a slightly slower pace than before.

Experts at Kantar also couldn't say if food prices have reached a peak.

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Fraser McKevitt, head of retail and consumer insight at Kantar, said: "The latest drop in grocery price inflation will be welcome news for shoppers but it's too early to call the top.

"We've been here before when the rate fell at the end of 2022, only for it to rise again over the first quarter of this year.

"It's important to remember, of course, that falling grocery inflation doesn't mean lower prices, it just means prices aren't increasing as quickly."

Natasha Wynarczyk