Food costs still falling… but experts warn that price hikes are on the horizon due to Brexit red tape and rising shipping costs
- Food prices fell 0.3 percent in May compared to the same month last year
- The annual fall in fresh food prices was 1 percent, after the 1.5 percent drop in April
- But bosses at British Retail Consortium warn there are increases in the pipeline
- Helen Dickinson says shipping costs are rising and raw material prices are rising
Food prices continue to fall every year, but shop owners warn that increases are in the pipeline.
They dropped food prices in May by 0.3 percent compared to the same month last year. And in April there was an annual decline of 0.6 percent, according to figures from the British Retail Consortium.
Notably, the annual drop in fresh food prices was 1 percent, following a 1.5 percent drop in April.
Looking at total retail prices across all sectors, the BRC figures show an annual decline of 0.6 percent for May.
But Helen Dickinson, of BRC, warned that global food prices are at their highest in seven years, shipping costs are rising and commodity prices are rising.
Helen Dickinson (above) warned that global food prices are at their highest in seven years, shipping costs are rising and commodity prices are rising
She said: ‘We will likely see these costs trickle down into the second half of this year, and with the added red tape of Brexit this fall, retailers may be forced to pass some of these costs on to their customers. ‘
Ms Dickinson added: ‘It was another good month for consumers looking for bargains as prices fell again, albeit at a slower pace than last month.
“Supermarkets have fought hard to maintain market share and keep frugal customers happy by keeping prices low.
‘However, the pressure on costs is easing.
Global food prices are currently at their highest level in seven years, shipping costs have tripled since 2019 and raw material prices are rising…Government can help ease the burden on UK consumers by finding ways to mitigate the impact of new controls and required documentation to be minimized from October.’
Food prices fell 0.3 percent in May from the same month last year and April saw an annual decline of 0.6 percent, figures from the British Retail Consortium show. (Stock Photo)
NielsenIQ’s chief retailer and business acumen for analysts, Mike Watkins, said: “Consumers will see the impact of higher energy and fuel costs on household bills and while some cost increases come through the supply chain, this is not enough for retail price inflation to reverse. turn.
“With high street retailers continuing to offer price reductions and supermarkets promoting seasonal food and drinks, this will help offset the rise in the cost of living.”