Grocery inflation ticks up again - as energy costs weigh on shoppers
A closely-watched measure of grocery inflation has ticked up for a second consecutive month amid fears of an energy-led surge ahead.
By Sky News
Grocery price inflation has risen for a second consecutive month, adding to pressure on household budgets as energy and fuel costs increase.
Worldpanel by Numerator said grocery price inflation reached an annual rate of 2.5% in the four weeks to 4 October. The figure was up from 2.3% in its previous report.
The research tracks prices and sales across major supermarket chains. It found that prices rose fastest for water, cordials and skincare products during the period.
Prices fell most sharply for butter, cheese and chocolate, according to the data.
The report also pointed to changes in shopping habits as households respond to rising energy costs and uncertainty about future bills. Promotions at supermarket tills remained widespread, but overall grocery inflation has been rising since August.
Diesel prices were approaching £2 a litre during the reporting period, while the household energy price cap had increased by 4%.
The latest rise means October’s grocery figures will reflect both fuel costs and the increase in household energy bills. Forecasts cited in the report suggest the energy price cap could rise by at least 16% from January.
There are also concerns that poor harvests, linked to hot weather and the expected effects of a strong El Niño weather pattern, could place further pressure on food prices.