UK food price inflation hits highest level since global financial crash

theguardian.com:

The rapidly rising price of food including milk, margarine and crisps pushed August shop price inflation to the highest levels since 2008 as the war in Ukraine raised costs for farmers.

Prices in shops rose by 5.1%, a big increase from 4.4% in July, as food producers passed on increases in the cost of fertiliser, wheat and vegetable oils, large amounts of which are produced in Ukraine and Russia, according to data from the British Retail Consortium (BRC) and market research firm NielsenIQ.

Fresh food prices rose by 10.5%, the highest rate since September 2008, when the global financial system was on the brink of collapse. The increase from a rate of 8% in July more than offset a slight decline in non-food inflation of 3% in August from 2.9% a month before.

The rise in shop prices adds to pressure on households already struggling to cope with the prospect of much higher household energy bills this autumn and winter as well as high petrol prices. Those on the lowest incomes are expected to be hit hardest by inflation because a larger proportion of their budget goes on essentials including food and energy.

Helen Dickinson, the chief executive of the BRC, which represents thousands of shop owners, said:“The situation is bleak for both consumers and retailers, but retail businesses will remain committed to supporting their customers through offering discounts to vulnerable groups, expanding value ranges, fixing prices of essentials and raising staff pay.

“However, as retailers also grapple with growing cost pressures, there is only so much they can shoulder. The new prime minister will have an opportunity to relieve some of the cost burden bearing down on retailers, like the upcoming increase in business rates, in order to help