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Britain’s retail inflation increase to record level since July 2011

According to an industry report, retail inflation in the United Kingdom increased to 2.8 percent in May, up from 2.7 percent in April, marking the highest increase since July 2011.

According to a report released by the British Retail Consortium, food inflation reached 4.3 percent in May, up from 3.5 percent in April, and is the highest since April 2012.

Retail prices rose further as commodity, energy, and transportation costs rose, according to Helen Dickinson, chief executive of the industry body.

According to Dickinson, fresh food inflation reached its highest level since November 2012, at 4.5 percent, with poultry and margarine seeing some of the largest increases due to soaring animal feed costs and near-record global food prices.

In April, Britain’s energy price cap increased from 1,277 pounds ($1,591) to 1,971 pounds per year for approximately 22 million customers.

The country’s energy regulator warned in May that the cap would be raised to around 2,800 pounds per year in October.

British consumers have experienced the highest price increases in decades in recent months. Inflation rose by 9% in the year to April, and the Bank of England expects it to rise further to slightly more than 10% by the end of the year.

According to a survey conducted by the British market research firm YouGov at the end of May, an overwhelming 62% of respondents thought the economy was the most important issue confronting the country, with health a distant second.

Because rising food and energy prices were key drivers of inflation, the poorest households were expected to bear the brunt.

Britain announced in May that it would levy a tax on oil and gas profits to help fund a support package aimed primarily at vulnerable households.

About the author

Brendan Taylor

Brendan Taylor was a TV news producer for 5 and a half years. He is an experienced writer. Brendan covers Breaking News at Insider Paper.

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