NI retailers insist they are doing 'all they can' as food prices soar by 13.3%

Food inflation has accelerated to record levels as many households suffered a challenging Christmas due to soaring prices, according to new figures.

The price of food for shoppers jumped to 13.3% in December, from 12.4% in the previous month.

It came as the latest BRC-NielsenIQ shop price index showed a slight sign of respite for cash-strapped shoppers, as overall shop price inflation eased slightly to 7.3% for the month.

Glynn Roberts, chief executive of Retail NI, said: “With cost pressures right across the supply chain, food inflation is becoming a huge challenge for households. Our members are doing everything they can not mitigate this and to limit prices increases for hardworking families in their grocery basket.”

He continued: “With a ‘cost-of-doing-business crisis’, the most expensive business rates in the UK, rising energy costs, inflation and a fall in spending, 2023 is going to be the biggest ever challenge for Northern Ireland’s high streets.”

Helen Dickinson, chief executive of the British Retail Consortium (BRC), said: “It was a challenging Christmas for many households across the UK.

“Not only did the cold snap force people to spend more on their energy bills, but the prices of many essential foods also rose as reverberations from the war in Ukraine continued to keep high the cost of animal feed, fertiliser and energy.”

Fresh food inflation leapt to 15% for the month from 14.3% in November, while the price of ambient food, such as pasta and tinned food, increased 11% in December against the same month a year earlier.

However, non-food shops, such as fashion or homeware retailers, saw inflation slow to 4.4% in December from 4.8% a month earlier due to price cuts.

Ms Dickinson added: “Non-food price rises eased as some retailers used discounting to shed excess stock built up during the disruptions to supply chains, meaning some customers were able to bag bargain gifts.

“The combined impact was that price increases overall plateaued, with the reduction in non-food inflation offsetting the higher food prices.”