Food prices increased by 9.3% during August, the highest level recorded since the global financial crisis in August 2008.

This represents an increase from 7% in July and appears to be down to higher prices for wheat and vegetable oils, caused by the war between Russia and Ukraine.

Data from the British Retail Consortium (BRC) and market research firm NielsenIQ also showed that fresh food prices increased by an astonishing 10.5% in August, up from 8% in July, the highest inflation rate recorded since September 2008. Milk, margarine and crisps saw the biggest rises.

Shop price record rise

This contributed to an overall 5.1% rise in shop prices, up from 4.4% in July, marking a new record since the BRC and NielsenIQ started tracking prices in 2005.

Mike Watkins, head of retailer and business insight at NielsenIQ, commented: “We can expect this level of food inflation to be with us for at least another six months, but hopefully some of the input cost pressures in the supply chain will eventually start to ease.”

Helen Dickinson, Chief Executive of the British Retail Consortium described the situation as “bleak for both consumer and retailers” but acknowledged that “retail businesses will remain committed to supporting their customers through offering discounts to vulnerable groups, expanding value ranges, fixing prices of essentials, and raising staff pay.”

She also called on the government to alleviate the strain on the consumer. She said: “The new Prime Minister will have an opportunity to relieve some of the cost burden bearing down on retailers, like the upcoming increase in business rates, in order to help retailers do more to help their customers.”