Shop price inflation rose to 0.4% year on year in June, moving up from a decline of -0.1% in May. Non-Food inflation reached -1.2% in June, compared to -1.5% in May. Food inflation saw a significant increase to 3.7% in June, exceeding the previous month's growth of 2.8%. Fresh Food inflation rose to 3.2%, while Ambient Food inflation increased to 4.3%. Experts predict further food inflation increases due to high costs, geopolitical tensions, and climate change, emphasizing the need for government intervention to support retailers.
Within three months of the costs imposed by last Autumn's Budget kicking in, headline shop prices have returned to inflation for the first time in close to a year.
Food inflation showed little sign of slowing down, particularly in fresh produce, where prices of meat have been impacted by high wholesale prices and more expensive labour costs.
Retailers have warned of higher prices for consumers since last year's Autumn Budget and the huge rises to Employer National Insurance costs and the National Living Wage.
To limit further rises, Government must find ways to alleviate the cost pressures bearing down on retailers.
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