Retailers have blamed rising energy bills and the chancellor Rachel Reeves\u2019s hike in employers\u2019 national insurance contributions for a jump in food prices, as suppliers and supermarkets struggle to absorb higher costs.<\/p>\n
The British Retail Consortium (BRC), the trade body for retailers, said prices across all goods in shops rose by 1.5% in January compared with the same month last year, up from a 0.7% rise in December and higher than the 0.7% increase economists had been expecting. It is also above the three-month average of 0.9%.<\/p>\n
Food prices increased at a rate of 3.9% year on year in January, up from 3.3% in December, the BRC\u2019s monthly price monitor showed. Fresh food inflation rose to 4.4% over the same period.<\/p>\n
Helen Dickinson, the chief executive of the BRC, said: \u201cAny suggestion that inflation has peaked is simply not borne out by these figures. Shop price inflation jumped this month due to high business energy costs and the hike to national insurance continuing to feed through to prices.\u201d<\/p>\n
She added: \u201cMeat, fish and fruit were particularly affected, also reflecting weak supply and stronger demand, while non-food categories, including furniture, flooring, and health and beauty, all saw inflation rise.\u201d<\/p>\n
In her first budget after Labour returned to power<\/a> in 2024, Reevesincreased the rate of employers\u2019 national insurance contributions (NICs) from 13.8% to 15% from last April. The threshold for NICs being levied was also cut from \u00a39,100 to \u00a35,000 a year. The national minimum wage rose by 6.7% in April.<\/p>\n