The summer of 2018 was one of the driest, sunniest and hottest that many Britons will ever have experienced, but weather always gives the Brits something to moan about (many said it was too hot!). Whilst there were enough summer downpours to avoid drought restrictions for most, the weather is set to make people whine about rising food prices.
According to the British Retail Consortium (BRC), shop prices have gone up for the first time in five years – this may astound many UK consumers, but it would be an average figure, of course. BRC recorded at 0.1% rise in shop prices in August which put an end to a cycle of 63 months where prices in shops have been declining.
Food inflation played a role in this hike, having gone up by 1.9% on the strength of the unseasonably hot British summer. Ever the optimists, BRC warned that there would be considerably steeper price rises to come if the UK leaves the EU without a deal (and therefore a transitional period). BRC noted that price deflation (as a whole) had slowed from 1.4% in July to 1% this month – however, that implies that retail shopping is still getting cheaper.
The UK also endured a much colder winter than it typically does, this combined with a hot summer has been blamed for a spiking of prices for food items such as wheat, carrots and lettuces. There are fears that this could see consumer food prices rising by as much as 5%, estimated as an additional £7 on the average household bill.
Helen Dickinson, BRC chief executive wasn’t pulling her punches: "Despite significant increases in costs in the supply chain, this month's figures show that retailers are keeping price increases faced by consumers to a minimum. However, current inflationary pressures pale in comparison to potential increases in costs retailers will face in the event the we leave the EU without a deal. If that does happen retailers will not be able to shield consumers from price increases.” Brexit means Brexit.