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UK food inflation hit a new high of 12.4% in November, driven by rising prices of basics such as eggs, dairy products and coffee.
Fresh food prices rose – inflation rose to 14.3% from 13.3% in October – and is expected to rise over the next year, according to the latest data from the British Retail Consortium trade body, which represents most major retailers and the market. Research firm NielsenIQ.
Overall shop price inflation rose to 7.4% in November from 6.6% in the previous month, not seen since at least 2005, as prices of items such as sports equipment also jumped.
Rising commodity prices are likely to hit poor households the hardest, many of whom are already struggling with high energy bills, as they have fewer options to cut back and save.
Those with higher incomes can offset inflation to some extent by spending on non-essentials such as food and holidays and by switching to cheaper products, shopping at discounters such as Aldi and Lidl, or shopping at large supermarkets. own label goods.
Retail bosses said Christmas spending would be higher this year despite a wave of discounts aimed at encouraging increased spending in the final months of the year, when most businesses make most of their profits.
Helen Dickinson, chief executive of the British Retail Consortium, said: “Winter looks increasingly bleak as pressure on prices continues. Food prices continue to rise, particularly for meat, eggs and dairy, influenced by rocketing energy costs and rising costs of animal feed and transportation.
“Coffee prices rose last month as higher input costs filtered through to price tags. Christmas gifting is also set to be more expensive than in previous years, with sports and recreational equipment seeing a particularly steep rise.”
Dickinson said spending pressures for retailers could ease next year, which would reduce price pressures for shoppers, but she said: “Christmas cheer will be reduced this year as households cut back on seasonal spending to prioritize essentials.”
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