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U.K. shop-price inflation in early February hit a further record high as soaring energy bills, higher costs and a tougher trading backdrop continued to impact retail prices in all categories, the latest shop-price index report by NielsenIQ and the British Retail Consortium showed.
Prices at U.K. stores for Feb. 1-7 were 8.4% higher than the same period a year earlier. This compares with January’s increase of 8.0% and a three-month average rate of 7.8%, according to the report.
Fresh-food inflation continued to be the fastest-growing category, accelerating to 16.3% from the 15.7% reported a month earlier, reaching its highest rate since the index started in 2006. The increase also exceeded the three-month average rate of 15.6%. The prices were lifted by a weaker pound, which made produce imports–especially vegetables from Europe–more expensive.
Non-food inflation rose to 5.3% and also reached a record-high, up from 5.1% in January, with a particular impact in gardening tools and pet food. The increase is above the 3-month average rate of 4.9%.
“While we expect to see the annual inflation rate reduce in the second half of this year, retail prices will remain high over the coming months,” British Retail Consortium Chief Executive Helen Dickinson said.
Write to Michael Susin at michael.susin@wsj.com
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