SHOPPERS have been hit by the highest price rises in nearly 10 years after shop inflation almost doubled over the past month, data suggests reports the BBC.

Shop price inflation jumped from 0.8% in December to 1.5% in January, the BRC-NielsenIQ price index indicated.

The sharp rise was driven by non-food price increases, which included furniture and flooring in high demand.

Many families have been struggling with a cost of living crisis as fuel prices and energy bills soar.

The latest official figures showed inflation at its highest rate for 30 years.

Non-food inflation rose to 0.9% in January after falling by 0.2% in December, while food inflation accelerated to 2.7% in January, up from 2.4% in December. 

Helen Dickinson, chief executive of the British Retail Consortium (BRC), said January saw shop price inflation nearly double, “driven by a sharp rise in non-food inflation”.

“In particular, furniture and flooring saw exceptionally high demand leading to increased prices as the rising oil costs made shipping more expensive,” she added.

“Food prices continue to rise, especially domestic produce which have been [hit] by poor harvests, labour shortages, and rising global food prices.”

Ms Dickinson also said this would directly affect households’ cost of living as “it would be impossible to protect consumers from any future rises” in costs.

The BRC and research firm NielsenIQ measured inflation in retailers in the UK in the first week of January, looking at price changes in 500 commonly bought items.

It said that shop price rises were the highest since December 2012. 

Global rising energy prices, supply problems and higher shipping costs are hitting retailers, with many costs being passed on to consumers.

Staff shortages are a particular problem in the UK, due to Brexit and the pandemic, and are prompting some employers to raise wages, which can contribute to inflation.

Construction supply firm Timco told BBC Radio 4’s Today programme it had seen its raw materials and shipping costs increase over the past 18 months.

The firm said it used to pay about $1,000 (£739) for a shipping container, but was now having to pay “north of $10,000”.

Alex Stephens, Timco’s finance director, said: “Back then, the cost of shipping as a percentage of an overall product might have been low, a single-digit percent, now I would say it’s somewhere between 20% and 50% of the pricing. 

“We are currently bringing in containers from the Far East where the shipping cost is pretty much the same as the cost of the materials that we are bringing in,” he said.

“To be honest, nothing has gotten any better. If anything, things at the moment are getting worse.”

Increasing wholesale costs have also led to predictions that annual food bills could rise by £180 on average, according to consultants Kantar.

It said annual grocery inflation was 3.8% over the past four weeks, up from 3.5% in December.

For more details, go to:

https://www.bbc.co.uk/news/business-60215994