Prices in British shops are rising faster than ever before, The Times reports. According to the British Retail Consortium, food price inflation in the UK has risen by 15% over the year and non-food prices are 5.9% higher than a year ago.
Food price inflation in the UK has risen by 15% over the year, causing prices in shops to rise faster than ever before, The Times reports.
In average, prices in British shops are now 8.9% higher than at the same time a year ago, the highest annual inflation rate recorded by the British Retail Consortium.
As the publication notes, the data was released amid Bank of England governor Andrew Bailey’s statement that core inflation in the country will fall “sharply” this year, which is “likely to start in a couple of months or so”. Consumer price inflation jumped unexpectedly to 10.4% in February amid rising food prices, but it is forecast to fall to almost 4% by the end of the year.
Speaking at the London School of Economics, Bailey said the Bank of England’s monetary policy rate-setting committee would remain “very vigilant to any signs of sustained inflationary pressures” and would raise interest rates for the 12th consecutive time if price pressures prove stronger than expected.
The committee predicts the recent rise in food prices will subside. As it has often been linked to temporary factors such as bad weather and poor harvests in a number of countries. For example, bad weather conditions in Brazil hampered sugar production, which affected the prices of a number of commodities.
Inflation for fresh food in the UK accelerated to 17% in March from 16.3% in February. Inflation on convenience foods – soups, preserved fruit and sauces – accelerated to 12.4% from 12.2% last month.
Prices of non-food items are now 5.9% higher than a year ago, up from 5.3% in February. This is also a new high, the British Retail Consortium said.
“Shop price inflation has not yet reached its peak,” the publication quoted Helen Dickinson, executive director of the consortium, as saying.
The organization predicts that food price inflation will start to decline by summer and the start of the UK vegetation period.
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