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Simon Meechan

Highest price rises in 10 years in January as cost of living crisis continues

Shoppers faced the highest price rises in 10 years last month, price index data suggests.

A British Retail Consortium report into inflation revealed shop price inflation almost doubled in the past month, from 0.8% in December 2021 to 1.5% in January.

January's rate of shop price inflation is the highest since 2012. Food inflation rose from 2.4% to 2.7% , leading to prices increasing at their highest rate since October 2013.

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The British Retail Consortium chief executive Helen Dickinson 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.

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

The figures by the British Retail Consortium and Nielsen IQ looked at price changes for 500 common items at retailers across the UK. They also found non-food inflation on products like clothes and furnishings rose to 0.9 in January, compared to 0.2% in December.

Ms Dickinson warned it will be "impossible to protect customers" from future rises and a cost of living crisis.

Fresh food inflation did slow slightly from 3.0% in December to 2.9% in January, but is still above the 12-month and six-month average growth rates.

Mike Watkins, head of retailer and business insight at NielsenIQ, said: “The surge in energy and travel costs is now impacting disposable incomes and is likely to dent consumer’s willingness to spend.

“NielsenIQ research this month shows nearly a half of all households are saying that their most important concern at the moment is the rising cost of living.”

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