With food price inflation running at its fastest pace in over 45 years, there is a glaring divergence between the volume and value of sales in food stores in the UK. With retail sales activity continuing to stay subdued, the graph above indicates that the average household is essentially paying more for less when it comes to food store items.
And that is pretty much a key issue when it comes to the cost-of-living crisis in the UK at the moment.
As March continues to see double-digits inflation, the BOE is under pressure to deliver further rate hikes in the months ahead. However, tighter policy and a further crunch of financial conditions will weigh further on households alongside high inflation and that's a vicious cycle to be a part of for the everyday consumer.
