"Any suggestion that inflation has peaked is simply not borne out by these figures. Shop price inflation jumped this month due to high business energy costs and the hike to National Insurance continuing to feed through to prices. Meat, fish and fruit were particularly affected, also reflecting weak supply and stronger demand, while non-food categories, including furniture, flooring, and health and beauty, all saw inflation rise."
"It is a challenging time for households. Retailers do what they can to keep prices down in a competitive market, but thin margins and rising costs of Government policy make it harder. Government must double down on costs in order to support households. A good place to look is the spiralling energy charges, especially non commodity levies, which are raising operating costs, squeezing margins and flowing through into retail prices."
Shop price inflation rose to 1.5% year‑on‑year between 1 and 7 January, up from 0.7% in December and above the three‑month average of 0.9%. Non‑food inflation moved to 0.3% year‑on‑year in January, reversing a 0.6% December decline and exceeding the three‑month average of −0.3%. Overall food inflation increased to 3.9% (from 3.3%), with fresh food at 4.4% and ambient food at 3.1%, all above their three‑month averages. Higher business energy costs and the National Insurance rise are feeding through to prices, affecting meat, fish, fruit, furniture, flooring and health and beauty. Rising operating costs and thin retail margins are pressuring household budgets, while some checkout savings remain available.
Read at London Business News | Londonlovesbusiness.com
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