Ukraine war and China lockdowns drive fastest UK price rises in years

theguardian.com:

The cost of household goods such as toys, furniture and clothing is rising by the fastest rate in more than 15 years as the impact of the war in Ukraine combines with Covid lockdowns in China.

Non-food inflation accelerated to 2.2% in April, up from 1.5% in March, according to the latest shop price index from the British Retail Consortium (BRC) and market research group NielsenIQ, the highest rate since the monitor began in 2006.

Food inflation rose to 3.5% in April – from 3.3% in March – making it the highest such figure on the index since March 2013, as the price of energy and commodities, including wheat and oil, drove up costs for many producers.

The inflation is intensifying existing pressures on the cost of living, including last month’s energy cap increase that pushed the average electricity and gas bill up by £700 a year. The cost of petrol has also shot up, while household budgets arealready under pressure after the chancellor, Rishi Sunak, raised national insurance contributions.

Helen Dickinson, chief executive of the BRC, which represents most of the major UK retailers, said furniture, electrical goods and books were seeing particularly high price increases as disruption caused by Russia’s invasion of Ukraine added to rising energy prices.

It is understood that flooring, stationery and DIY materials, including paint, which are all heavily imported from China where many large cities have been shut down as part of strict anti-Covid measures, are also seeing high cost increases.

“This [inflation] has been exacerbated by disruption at the world’s largest seaport, following Shanghai’s recent lockdown,” Dickinson said. “Food prices continued to rise, though fresh food inflation slowed as fierce competition between