UK retail prices rise at fastest rate in over a decade, new data shows

Retail prices in the UK rose in February at the fastest rate in over 10 years, according to new data.

Shop price annual inflation accelerated to 1.8 percent in February, up from 1.5 percent in January, marking the highest rate of inflation since November 2011.

That’s according to the latest figures from the BRC-NielsenIQ price index.

The inflation of non-food items, which includes fashion, accelerated to 1.3 percent last month, up from 0.9 percent in January, marking the highest rate of inflation since September 2011.

Helen Dickinson, the chief executive of the BRC, said the overall rise was driven by food inflation, particularly fresh food which was impacted by poor harvests in the UK and globally.

In terms of non-food inflation, categories most impacted were health, beauty and furniture.

Dickinson said there was “little sign of change”, with the Bank of England predicting hiked prices to continue until at least the Spring.

“Price rises will be unwelcome news for households who already face falling disposable income because of the rise in national insurance and energy price caps,” Dickinson said.

She continued: “Retailers continue to face cost pressures from higher shipping rates, with crude oil prices having almost doubled over the last year. Other pressures include labour shortages, commodity price increases, and rising energy prices.

“Retailers are going to great lengths to mitigate against these price rises and support their customers, for example, many supermarkets have expanded their value ranges for food. Unfortunately, there are limits to the costs that retailers can absorb.”