Food inflation hits record 11.6% sending cost of tea bags, milk and sugar soaring

Price of a cup of tea is on the rise as food inflation hits record 11.6% sending cost of tea bags, milk and sugar soaring.

Food inflation hit a record 11.6 per cent in October, according to the British Retail Consortium (BRC)-Nielsen Shop Price Index.

Overall shop prices annual inflation accelerated to 6.6% in October, up from 5.7% in September.

Fresh food prices were 13.3% higher in October than the same time last year.

This is above the 3-month average rate of 12.0% and is the highest inflation rate in the fresh food category on record.

Helen Dickinson OBE, Chief Executive of the British Retail Consortium, said:

“It has been a difficult month for consumers who not only faced an increase in their energy bills, but also a more expensive shopping basket.”

“Prices were pushed up because of the significant input cost pressures faced by retailers due to rising commodity and energy prices and a tight labour market.”

“Even the price of basic items went up, with the price of the humble cuppa rising, as tea bags, milk and sugar all saw significant rises.”

Helen Dickinson said: “While some supply chain costs are beginning to fall, this is more than offset by the cost of energy, meaning a difficult time ahead for retailers and households alike.”

“With Christmas fast approaching, customers are looking for any sign of respite, but it is increasingly difficult for retailers to shoulder the ongoing supply chain pressures.”

“The (UK) Government can support households by reducing the cost burden that prevents retailers from keeping prices down for their customers.”

“Government must freeze business rates to prevent an additional £800m bill landing on the plates of retailers and in turn their customers in 2023.”

It’s vital that households get support as food inflation soars, consumer group Which?? has said.

Sue Davies, Which? Head of Food Policy, said:

“Soaring food prices are a real concern and our research shows millions of consumers are already skipping meals or struggling to put healthy meals on the table due to the cost of living crisis.”

“It is vital that households get the support they need from the government and businesses.”

“Supermarkets have a crucial role to play in helping their customers navigate the tough months ahead.”

“Budget lines for healthy and affordable essential items need to be widely available across their stores and they should ensure shoppers can easily compare the price of products to get the best value.”

“Promotions should be targeted at supporting those most in need.”