Racing fresh food inflation has driven up shop prices at the fastest pace in more than a decade, according to the latest industry data.
Shop price annual inflation hit 1.8% in February, up from 1.5% in the previous month, which marks the highest rate since November 2011, the British Retail Consortium reported.
Non-food inflation accelerated from 0.9% in January to 1.3% last month as health, beauty and furniture prices all spiked.
Meanwhile, food inflation overall stayed unchanged at 2.7% in February, the BRC-NielsenIQ shop price index showed.
But fresh food prices raced to 3.3% - compared with 2.9% in January - which is the highest level since March 2013, pushed up by poor harvests in the UK and globally.
Ambient food inflation slowed in the month from 2.4% to 2%.
BRC chief executive Helen Dickinson said food inflation remained the key driver behind higher prices.
“Retailers continue to face cost pressures from higher shipping rates, with crude oil prices having almost doubled over the last year,” she added.
“Other pressures include labour shortages, commodity price increases, and rising energy prices. Retailers are going to great lengths to mitigate against these price rises and support their customers, for example, many supermarkets have expanded their value ranges for food. Unfortunately, there are limits to the costs that retailers can absorb.”
Mike Watkins, head of retail and business insight at NielsenIQ, said the underlying trend in shop prices would be upwards over the next few months.
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