"Bumpy road" looms for consumers as UK shop prices rise again

(Alliance News) - UK shop price growth accelerated in April, figures on Wednesday showed, as the retail sector moved to weather increasing inflationary pressures.

According to figures from the latest British Retail Consortium-NielsenIQ tracker, shop prices rose 2.7% annually in April. Growth quickened from 2.1% in March.

April's climb was also above the six-month average rise of 1.5%, the BRC noted.

Food inflation alone accelerated to 3.5% in April from 3.3% in March, above the six-month average price growth of 2.6%.

"The impact of rising energy prices and the conflict in Ukraine continued to feed through into April's retail prices," BRC Chief Executive Helen Dickinson said.

"Non-food products, particularly furniture, electricals and books, have seen the highest rate of inflation since records began. This has been exacerbated by disruption at the world's largest seaport, following Shanghai's recent lockdown. Food prices continued to rise, though fresh food inflation slowed as fierce competition between supermarkets resisted price hikes on many everyday essentials."

Annual non-food inflation quickened to 2.2% in April from 1.5% in March.

Looking ahead, UK food prices could continue to grow.

Dickinson added: "Global food prices have reached record highs, seeing a 13% rise on last month alone, and even higher for cooking oils and cereals. As these costs filter through the supply chain, they will place further upward pressure on UK food prices in the coming months. Retailers will continue to do all they can to keep prices down and deliver value for their customers by limiting price rises and expanding their value ranges, but this will put pressure on them to find cost-savings elsewhere. Unfortunately, customers should brace themselves for further price rises and a bumpy road ahead."

By Eric Cunha; ericcunha@alliancenews.com

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