Food price inflation accelerated strongly to 11.6% in October, up from 10.6% in September.

According to the British Retail Consortium (BRC), this is above the three-month average rate of 9.7% and is the highest inflation rate in the food category on record.

Overall, shop price inflation jumped 6.6% in October, up from 5.7% in the previous month. Again, this is above the three-month average rate of 5.5% and marks another record for shop price inflation since the BRC Nielsen IQ shop price index started in 2005.

Non-food inflation, fresh food and store cupboard item prices have also soared off the back off cost pressures faced by retailers due to rising commodity and energy prices. The tight labour market is also playing its part as there are a record number of vacancies but a limited pool of people seeking employment.

‘Difficult time ahead’

Helen Dickinson OBE, chief executive of the British Retail Consortium, said: “It has been a difficult month for consumers who not only faced an increase in their energy bills, but also a more expensive shopping basket.

“Even the price of basic items went up, with the price of the humble cuppa rising, as tea bags, milk and sugar all saw significant rises. While some supply chain costs are beginning to fall, this is more than offset by the cost of energy, meaning a difficult time ahead for retailers and households alike.”

The BRC is calling for a freeze on business rates to prevent an additional £800m bill “landing on the plates of retailers and in turn their customers in 2023” as “it is increasingly difficult for retailers to shoulder the ongoing supply chain pressures.”

Dickinson said: “The government can support households by reducing the cost burden that prevents retailers from keeping prices down for their customers.”

Mike Watkins, head of retailer and business insight, NielsenIQ, added: “External factors are keeping shop price inflation at record highs and the challenging economic conditions are significantly impacting consumer confidence and retail spend. With pressure growing on discretionary spend across both non-food and food retail, delivering good value is the table stake in the battle for shopper loyalty over the next eight weeks.”