Families struggling with the cost-of-living crisis have been hit with another hurdle, with food inflation rising by 4.2% from 4% in July. This is the highest inflation since February 2024.
High prices of chocolate, butter and eggs seem to be the main culprits, while fresh food has also risen by 4.1% from 3.2% in July.
The chief executive of the BRC, Helen Dickinson, said, "This adds pressure to families already grappling with the cost of living. Retailers continue doing everything they can to limit price rises for households, but as the Bank of England acknowledged, the £7 billion in new costs flowing through from last year’s budget has created an uphill battle for retailers."
Over 60 retail bosses that including Sainsbury's, Tesco's and Boots, have sent a letter warning Chancellor Rachel Reeves against raising taxes further in the autumn budget, as it will contradict her plans to improve UK living standards.
They later go on to say that they're expecting food and drink inflation to rise to 6% later this year.
Mike Watkins, head of retailer and business insight at NIQ, said, "The uptick in prices reflects several factors: global supply costs, seasonal food inflation driven by weather conditions, the conclusion of promotional activity linked to recent sporting events, and a rise in underlying operational costs."
"As shoppers return from their summer holidays, many may need to reassess household budgets in response to rising household bills"
