The weakening pound – and subsequent demand overseas for food produced in the UK – are responsible for continued food price inflation, according to the British Retail Consortium has claimed.
The shop price of food was increasing because retailers were paying more for their supplies, BRC director general Stephen Robertson said.
Nielsen data produced yesterday by the BRC showed that the price of food in shops had risen by 9% year-on-year and 0.1% month-on-month.
The majority of food consumed in the UK was sourced domestically, said Robertson. However, “the weak pound is pushing up prices for domestic produce as it becomes more attractive to overseas buyers”, he added.
However, Robertson insisted that food price inflation was still lower than its peak last year.