Food prices are rising at their fastest pace for more than five years after extreme weather last year and an increase in global import costs, industry figures show.
The shop price index compiled by the British Retail Consortium (BRC) and analytics firm Nielsen showed food inflation climbed sharply to 2.5% in March, the highest since November 2013.
That was up from 1.6% in February.
It comes after the “Beast from the East” weather system in 2018 sharply reduced UK production of crops such as onions, potatoes, and cabbages.
At the same time, the global market price of bread and cereals rose.
The index showed that non-food prices in March were flat on last year, held back by declines in the clothing and electrical sectors.
But the acceleration in food price growth helped push the overall index to the highest rate since March 2013, at 0.9% – up from 0.7% in February.
Mike Watkins, head of retailer and business insight at Nielsen, said: “With shoppers looking to stretch their budget for the weekly grocery shop this will not help volume growth, which has been slowing since the start of the year.
“For many high street fashion, home and outdoor retailers prices are not increasing, so good news for shoppers as the end of season ranges sell through.”
BRC chief executive Helen Dickinson said: “March saw shop price inflation rise to its highest level in six years, driven primarily by a sharp spike in non-perishable food inflation.
“Increases in global commodity prices and adverse weather events put upward pressures on the wholesale prices of many foodstuffs.
“Nonetheless, the bigger threat to food inflation remains the risk of a chaotic no-deal Brexit, which would lead to higher prices and less choice on the shelves.”
The BRC-Nielsen figures are separate from official inflation numbers compiled by the Office for National Statistics – with March’s data due out later this month.
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