Food price inflation rose in July for the sixth consecutive month, figures show.
Surging meat and tea prices are a significant factor, according to the British Retail Consortium (BRC)-NIQ Shop Price Monitor.
The study showed that food prices are now 4 per cent higher than a year ago, up from 3.7 per cent in June and the three-month average of 3.5 per cent.
Fresh food inflation held steady at 3.2 per cent, but ambient food prices jumped to 5.1 per cent higher than last June, up from last month’s 4.3 per cent.
Overall shop price inflation increased to 0.7 per cent from June’s 0.4 per cent in June, and up from from the three-month average of 0.3 per cent.
BRC chief executive Helen Dickinson said: “Families will have seen their food bills increase as food price inflation rose for the sixth consecutive month.
“Staples such as meat and tea were hit the hardest as wholesale prices for both categories have been hit by tighter global supplies.
“This has helped push up overall shop prices. There were a few bright spots, with discounts in fashion and furniture offering consumers a chance to refresh their wardrobe and homes.”
Mike Watkins, head of retailer and business insight at NIQ, said: “Consumers’ household budgets are coming under pressure with the food retailers now seeing price increases above CPI (Consumer Price Index).
“However, price competition helped by promotional activity will still mean that shoppers can save money by shopping around.
“With inflation on the up, high street retailers will also be concerned about customer retention over the summer holiday season if they are to maintain sales momentum.”
