Food inflation reached levels never seen before in November, with a shortage of eggs a major driver due to fewer hens being reared and avian flu.
The sharp drop in the supply has forced some supermarkets to ration egg sales. Prices have climbed 20pc in just a fortnight as the supply crisis deepens.
Helen Dickinson, chief executive of the BRC, said winter looked “increasingly bleak”.
“While there are signs that cost pressures and price rises might start to ease in 2023, Christmas cheer will be dampened this year as households cut back on seasonal spending in order to prioritise the essentials.”
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What happened overnight
Asian shares rebounded as investors pinned hopes on China eventually reopening its economy despite growing Covid lockdowns that pushed its factory and services sector activity deeper into contraction.
Europe and Wall Street were also set to open higher with FTSE and S&P 500 futures up 0.4pc and 0.2pc respectively.
MSCI’s broadest gauge of Asia Pacific stocks outside Japan reversed morning losses to gain 0.7pc. At current levels, the index is set to post its biggest monthly gain since April 1999.
Hong Kong’s Hang Seng Index and China’s benchmark CSI300 Index also bounced back, rising 0.8pc and 0.1pc respectively, as investors largely ignored an official survey that showed China’s factory activity contracted at a faster-than-expected pace in November.
